Contrasting China Merchants Holdings International (OTCMKTS:CMHHY) and Star Equity (NASDAQ:STRR)

China Merchants Holdings International (OTCMKTS:CMHHY) and Star Equity (NASDAQ:STRR) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares China Merchants Holdings International and Star Equity”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Merchants Holdings International	$1.71 billion	4.69	$834.46 million	N/A	N/A
Star Equity	$172.16 million	0.25	-$5.92 million	($2.63)	-4.41

China Merchants Holdings International has higher revenue and earnings than Star Equity.

Analyst Ratings

This is a summary of recent ratings and target prices for China Merchants Holdings International and Star Equity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Merchants Holdings International	0	0	0	0	0.00
Star Equity	2	1	1	1	2.20

Star Equity has a consensus target price of $28.00, suggesting a potential upside of 141.59%. Given Star Equity’s stronger consensus rating and higher possible upside, analysts clearly believe Star Equity is more favorable than China Merchants Holdings International.

Insider and Institutional Ownership

3.8% of Star Equity shares are held by institutional investors. 10.4% 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 will outperform the market over the long term.

Risk and Volatility

China Merchants Holdings International has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Profitability

This table compares China Merchants Holdings International and Star Equity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Merchants Holdings International	N/A	N/A	N/A
Star Equity	-4.18%	-4.04%	-2.40%

Summary

Star Equity beats China Merchants Holdings International on 7 of the 13 factors compared between the two stocks.

About China Merchants Holdings International

China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Brazil, Hong Kong, Taiwan, and internationally. The company operates through Ports Operation, Bonded Logistics Operation, and Other Operations segments. It engages in the container, and bulk and general cargo terminal operation; logistic park operation, ports transportation, and airport cargo handling; and property development, holding, and investment activities. The company also provides container related logistics services; financial services; and port development, management, and operation services. In addition, it operates berths and tugboats; and holds various pieces of land. The company was formerly known as China Merchants Holdings (International) Company Limited and changed its name to China Merchants Port Holdings Company Limited in June 2016. The company was founded in 1872 and is headquartered in Central, Hong Kong.

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.