Star Equity (NASDAQ:STRR – Get Free Report) and Addentax Group (NASDAQ:ATXG – Get Free Report) are both small-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Star Equity and Addentax Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 2 | 1 | 0 | 0 | 1.33 |
| Addentax Group | 1 | 0 | 0 | 0 | 1.00 |
Star Equity currently has a consensus price target of $5.00, suggesting a potential downside of 52.06%. Given Star Equity’s stronger consensus rating and higher probable upside, equities analysts plainly believe Star Equity is more favorable than Addentax Group.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $148.97 million | 0.24 | -$4.77 million | ($1.58) | -6.60 |
| Addentax Group | $4.14 million | 1.32 | -$5.09 million | ($0.59) | -0.79 |
Star Equity has higher revenue and earnings than Addentax Group. Star Equity is trading at a lower price-to-earnings ratio than Addentax Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Star Equity and Addentax Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Equity | -3.22% | -2.33% | -1.57% |
| Addentax Group | -96.23% | -18.12% | -9.95% |
Volatility & Risk
Star Equity has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Insider and Institutional Ownership
3.8% of Star Equity shares are owned by institutional investors. Comparatively, 10.1% of Addentax Group shares are owned by institutional investors. 33.5% of Star Equity shares are owned by company insiders. Comparatively, 4.9% of Addentax Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Star Equity beats Addentax Group on 8 of the 13 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 Addentax Group
Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.
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