Financial Comparison: Scully Royalty (NYSE:SRL) & Star Equity (NASDAQ:STRR)

Scully Royalty (NYSE:SRL) and Star Equity (NASDAQ:STRR) are both small-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

42.0% of Scully Royalty shares are held by institutional investors. Comparatively, 3.8% of Star Equity shares are held by institutional investors. 1.9% of Scully Royalty shares are held by company insiders. Comparatively, 10.4% of Star Equity shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Scully Royalty has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Scully Royalty and Star Equity, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	1	0	0	0	1.00
Star Equity	1	2	1	1	2.40

Star Equity has a consensus price target of $16.50, suggesting a potential upside of 72.41%. Given Star Equity’s stronger consensus rating and higher possible upside, analysts plainly believe Star Equity is more favorable than Scully Royalty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
Star Equity	-3.44%	-1.17%	-0.73%

Earnings & Valuation

This table compares Scully Royalty and Star Equity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$35.77 million	2.86	-$15.02 million	N/A	N/A
Star Equity	$172.16 million	0.21	-$5.92 million	($2.05)	-4.67

Star Equity has higher revenue and earnings than Scully Royalty.

Summary

Star Equity beats Scully Royalty on 7 of the 13 factors compared between the two stocks.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.

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.