Star Equity (NASDAQ:STRR) & Jardine Matheson (OTCMKTS:JMHLY) Critical Review

Jardine Matheson (OTCMKTS:JMHLY) and Star Equity (NASDAQ:STRR) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Earnings & Valuation

This table compares Jardine Matheson and Star Equity”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jardine Matheson	$35.78 billion	0.50	-$468.00 million	N/A	N/A
Star Equity	$140.06 million	0.22	-$4.77 million	($1.30)	-8.47

Star Equity has lower revenue, but higher earnings than Jardine Matheson.

Institutional & Insider Ownership

3.8% of Star Equity shares are owned by institutional investors. 10.4% of Star Equity 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Jardine Matheson and Star Equity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jardine Matheson	0	0	0	2	4.00
Star Equity	1	1	0	0	1.50

Star Equity has a consensus target price of $5.00, indicating a potential downside of 54.59%. Given Star Equity’s higher possible upside, analysts plainly believe Star Equity is more favorable than Jardine Matheson.

Profitability

This table compares Jardine Matheson and Star Equity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jardine Matheson	N/A	N/A	N/A
Star Equity	-2.81%	-3.81%	-2.84%

Risk and Volatility

Jardine Matheson has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Summary

Jardine Matheson beats Star Equity on 7 of the 12 factors compared between the two stocks.

About Jardine Matheson

Jardine Matheson Holdings Limited, through its subsidiaries, operates in motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, and transport businesses in China, Southeast Asia, and internationally. It also involved in the restaurants and hotels, financial services, heavy equipment, mining, and agribusinesses. The company offers automotive and transport services, as well as invests in, develops, and manages residential, commercial, and mixed-use properties. It also operates 7-Eleven, IKEA, and other retailing business, as well as Pizza Hut and KFC franchise restaurants; and invests in and manages hotels, resorts, and residences, as well as engages in construction and energy, infrastructure and logistics, and information technology businesses. In addition, the company sells and services motor vehicles; invests in, owns, develops, and manages office and retail properties; operates outlets, including supermarkets, hypermarkets, health and beauty stores, and home furnishings stores. Further, it engages in the automotive dealerships business. Additionally, the company invests in digital business, such as Halodoc, a healthtech online ecosystem; Sayurbox, an e-commerce grocery platform; Paxel, a technology-based logistics business; and OLX, a used car platform. Jardine Matheson Holdings Limited was founded in 1832 and is based in Hamilton, Bermuda.

About Star Equity

Star Equity Holdings, Inc. engages in the construction business in the United States and internationally. It operates through two segments: Construction, and Investments. It manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products; supplies general contractors with building materials; holds real estate assets; and manages investments. The company was formerly known as Digirad Corporation and changed its name to Star Equity Holdings, Inc. in December 2020. Star Equity Holdings, Inc. was founded in 1985 and is headquartered in Old Greenwich, Connecticut.