Head to Head Analysis: Star Equity (NASDAQ:STRR) versus Hitachi (OTCMKTS:HTHIY)

Star Equity (NASDAQ:STRR) and Hitachi (OTCMKTS:HTHIY) are both multi-sector conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Star Equity	-4.18%	-4.04%	-2.40%
Hitachi	7.64%	12.68%	5.68%

Risk and Volatility

Star Equity has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Hitachi has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

3.8% of Star Equity shares are held by institutional investors. Comparatively, 0.3% of Hitachi shares are held by institutional investors. 31.6% of Star Equity shares are held by company 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.

Earnings & Valuation

This table compares Star Equity and Hitachi”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Equity	$172.16 million	0.24	-$5.92 million	($2.63)	-4.20
Hitachi	$70.33 billion	1.91	$5.33 billion	$1.18	25.03

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Star Equity and Hitachi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Equity	2	1	1	1	2.20
Hitachi	0	2	0	1	2.67

Star Equity currently has a consensus price target of $28.00, suggesting a potential upside of 153.62%. Given Star Equity’s higher possible upside, analysts plainly believe Star Equity is more favorable than Hitachi.

Summary

Hitachi beats Star Equity on 10 of the 14 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 Hitachi

Hitachi, Ltd. provides digital system and services, green energy and mobility, and connective industry solutions in Japan and internationally. It operates through seven segments: Digital Systems & Services, Green Energy & Mobility, Connective Industries, Automotive System, Hitachi Construction Machinery, Hitachi Metals, and Others. The company offers system integration, consulting, cloud services, storage, servers, and ATMs; finance solutions, social infrastructure information systems, government and public corporation information system, big data and AI, and IoT and data management; and IT products. It also operates power grids, nuclear and clear energy, renewable energy; provides energy management services and distributed power source solutions; semiconductors; elevators and escalators; air conditioners; industrial equipment; and railway systems. In addition, the company offers medical equipment for radiation therapy, In-vitro diagnosis, and regenerative medicines; automotive systems; home appliances; and water treatment solutions for water supply and sewage infrastructure, industrial water treatment, seawater desalination, and water recycling, as well as maintenance and repair services. Further, it hydraulic excavators, wheel loaders, mining machinery, construction solutions, and mine management systems. Additionally, the company offers specialty steel, functional components and equipment, power electronic and magnetic materials, wires, and cable and related products; optical disk drives; and property management services. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.