Analyzing Star Equity (NASDAQ:STRR) & TIC Solutions (NYSE:TIC)

Star Equity (NASDAQ:STRR) and TIC Solutions (NYSE:TIC) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Earnings & Valuation

This table compares Star Equity and TIC Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Equity	$172.16 million	0.21	-$5.92 million	($3.06)	-3.25
TIC Solutions	$1.53 billion	1.39	-$87.12 million	($0.58)	-16.76

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

Institutional and Insider Ownership

3.8% of Star Equity shares are held by institutional investors. 31.6% of Star Equity shares are held by insiders. Comparatively, 11.4% of TIC Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Star Equity and TIC Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Equity	1	1	1	1	2.50
TIC Solutions	1	3	3	0	2.29

Star Equity currently has a consensus price target of $28.00, indicating a potential upside of 181.41%. TIC Solutions has a consensus price target of $12.00, indicating a potential upside of 23.46%. Given Star Equity’s stronger consensus rating and higher possible upside, research analysts plainly believe Star Equity is more favorable than TIC Solutions.

Volatility & Risk

Star Equity has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, TIC Solutions has a beta of 2.83, suggesting that its stock price is 183% more volatile than the S&P 500.

Profitability

This table compares Star Equity and TIC Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Equity	-4.35%	-4.21%	-2.39%
TIC Solutions	-5.64%	-2.30%	-1.11%

Summary

Star Equity beats TIC Solutions on 8 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 TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.