Star Equity (NASDAQ:STRR – Get Free Report) and Marubeni (OTCMKTS:MARUY – Get Free Report) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Insider & Institutional Ownership
3.8% of Star Equity shares are held by institutional investors. Comparatively, 0.1% of Marubeni shares are held by institutional investors. 33.5% of Star Equity shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Star Equity and Marubeni, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 2 | 1 | 1 | 1 | 2.20 |
| Marubeni | 0 | 2 | 0 | 0 | 2.00 |
Profitability
This table compares Star Equity and Marubeni’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Equity | -4.18% | -4.04% | -2.40% |
| Marubeni | 6.60% | 13.11% | 5.58% |
Valuation and Earnings
This table compares Star Equity and Marubeni”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $172.16 million | 0.25 | -$5.92 million | ($2.63) | -4.44 |
| Marubeni | $54.91 billion | 0.99 | $3.59 billion | $22.03 | 15.02 |
Marubeni has higher revenue and earnings than Star Equity. Star Equity is trading at a lower price-to-earnings ratio than Marubeni, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Star Equity has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Marubeni has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Summary
Marubeni beats Star Equity on 9 of the 15 factors compared between the two stocks.
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.
About Marubeni
Marubeni Corporation engages in various business activities. It manufactures, wholesales, and retails apparel, footwear, home furnishing and sport goods, industrial and textile materials, tire and rubber materials, and household and nursing care products; develops uranium, nuclear fuel cycle, iron ore, coking coal, copper mines, and related equipment and services; smelts and refines aluminum and magnesium; leases temporary steel construction materials; explores for, develops, and produces oil and gas; manages infrastructure funds; and develops and manages real estate. The company also offers insurance, technical, ICT, and logistic services; agri-inputs; fertilizer and crop protection product contracting services; crop protection product formulations; wood chips, biomass fuels, pulp and waste papers, paper, paperboards, sanitary, and building and construction materials; engineering, procurement, and construction services; and operation and maintenance services. It trades in fertilizers, dairy, agricultural, and marine products; sugar, processed food, beverages raw materials, and commercial use food materials; grains, oilseeds, feed ingredients, compound feeds, fresh and processed meat, petrochemicals, plastics, salts, chlor-alkalis, life science products, electronic materials, fertilizer materials, and inorganic mineral resources and chemicals; steelmaking raw materials, ferroalloys, nonferrous metals, and steel products; cement and ingots related materials; and petroleum and LPG. The company engages in infrastructure; water; automotive finance; power generation; power service and retail; natural gas; hydrogen; and fuel ammonia businesses. It owns, purchases, operates, leases, sells, and charters aerospace and ship products; leases refrigerated trailers, commercial vehicles, and freight cars; and sells, trades in, leases, finances, and services construction and industrial machinery, and mobility products. The company was founded in 1858 and is based in Tokyo, Japan.
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