Reviewing FTAI Infrastructure (NASDAQ:FIP) & Star (NASDAQ:STHO)

FTAI Infrastructure (NASDAQ:FIP) and Star (NASDAQ:STHO) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares FTAI Infrastructure and Star’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Infrastructure	-41.09%	-75.13%	-3.02%
Star	-58.33%	0.14%	0.07%

Volatility & Risk

FTAI Infrastructure has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Star has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Insider and Institutional Ownership

87.4% of FTAI Infrastructure shares are owned by institutional investors. Comparatively, 89.3% of Star shares are owned by institutional investors. 2.4% of FTAI Infrastructure shares are owned by insiders. Comparatively, 3.7% of Star shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares FTAI Infrastructure and Star”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Infrastructure	$331.50 million	2.12	-$223.65 million	($2.46)	-2.46
Star	$110.14 million	0.92	-$86.75 million	($11.08)	-0.76

Star has lower revenue, but higher earnings than FTAI Infrastructure. FTAI Infrastructure is trading at a lower price-to-earnings ratio than Star, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for FTAI Infrastructure and Star, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Infrastructure	1	0	2	0	2.33
Star	1	0	0	0	1.00

FTAI Infrastructure currently has a consensus target price of $11.00, suggesting a potential upside of 82.12%. Given FTAI Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe FTAI Infrastructure is more favorable than Star.

Summary

FTAI Infrastructure beats Star on 8 of the 14 factors compared between the two stocks.

About FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.

About Star

Star Holdings engages in the non-ground lease related commercial real estate businesses in the United States. Its portfolio primarily comprises interest in the Asbury Park Waterfront and Magnolia Green residential development projects. Star Holdings is based in New York, New York.