Reviewing Shanghai Industrial (OTCMKTS:SGHIY) & Star Equity (NASDAQ:STRR)

Star Equity (NASDAQ:STRR) and Shanghai Industrial (OTCMKTS:SGHIY) are both small-cap multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Star Equity and Shanghai Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Equity	0	1	0	0	2.00
Shanghai Industrial	0	0	0	0	0.00

Star Equity presently has a consensus target price of $5.00, suggesting a potential downside of 56.78%. Given Star Equity’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Star Equity is more favorable than Shanghai Industrial.

Volatility & Risk

Star Equity has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Shanghai Industrial has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500.

Institutional and Insider Ownership

3.8% of Star Equity shares are owned by institutional investors. 33.5% of Star Equity shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Star Equity	-2.81%	-3.81%	-2.84%
Shanghai Industrial	N/A	N/A	N/A

Valuation and Earnings

This table compares Star Equity and Shanghai Industrial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Equity	$140.06 million	0.23	-$4.77 million	($1.30)	-8.90
Shanghai Industrial	$3.71 billion	0.43	$359.94 million	N/A	N/A

Shanghai Industrial has higher revenue and earnings than Star Equity.

Summary

Shanghai Industrial beats Star Equity on 6 of the 11 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 Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.