Critical Review: Boston Omaha (NYSE:BOC) and Star (NASDAQ:STHO)

Boston Omaha (NYSE:BOCGet Free Report) and Star (NASDAQ:STHOGet Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Volatility & Risk

Boston Omaha has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Star has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Valuation and Earnings

This table compares Boston Omaha 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
Boston Omaha $108.28 million 3.86 -$1.29 million $0.03 442.57
Star $113.30 million 0.96 -$86.75 million ($4.32) -1.89

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Boston Omaha and Star, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Omaha 1 0 1 0 2.00
Star 1 0 0 0 1.00

Boston Omaha presently has a consensus price target of $25.00, indicating a potential upside of 88.30%. Given Boston Omaha’s stronger consensus rating and higher possible upside, analysts plainly believe Boston Omaha is more favorable than Star.

Profitability

This table compares Boston Omaha and Star’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boston Omaha 0.68% 0.14% 0.11%
Star -50.51% -32.44% -18.41%

Institutional & Insider Ownership

60.4% of Boston Omaha shares are owned by institutional investors. Comparatively, 89.3% of Star shares are owned by institutional investors. 23.2% of Boston Omaha shares are owned by insiders. Comparatively, 3.7% of Star shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Boston Omaha beats Star on 11 of the 14 factors compared between the two stocks.

About Boston Omaha

(Get Free Report)

Boston Omaha Corporation, together with its subsidiaries, engages in the outdoor billboard advertising business in the southeast United States. It is also involved in the surety insurance and related brokerage, broadband, and asset management businesses. The company was formerly known as REO Plus, Inc. and changed its name to Boston Omaha Corporation in March 2015. Boston Omaha Corporation was incorporated in 2009 and is headquartered in Omaha, Nebraska.

About Star

(Get Free Report)

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.

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