Star Equity (NASDAQ:STRR – Get Free Report) and Willdan Group (NASDAQ:WLDN – Get Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Volatility & Risk
Star Equity has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Willdan Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.
Profitability
This table compares Star Equity and Willdan Group’s 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% |
| Willdan Group | 8.80% | 24.51% | 13.92% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $209.75 million | 0.18 | -$5.92 million | ($3.06) | -3.37 |
| Willdan Group | $681.55 million | 1.68 | $52.56 million | $4.26 | 17.63 |
Willdan Group has higher revenue and earnings than Star Equity. Star Equity is trading at a lower price-to-earnings ratio than Willdan Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
3.8% of Star Equity shares are held by institutional investors. Comparatively, 72.3% of Willdan Group shares are held by institutional investors. 31.6% of Star Equity shares are held by company insiders. Comparatively, 5.6% of Willdan Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Star Equity and Willdan Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 1 | 1 | 1 | 1 | 2.50 |
| Willdan Group | 0 | 1 | 1 | 1 | 3.00 |
Star Equity currently has a consensus price target of $28.00, suggesting a potential upside of 171.32%. Willdan Group has a consensus price target of $127.50, suggesting a potential upside of 69.73%. Given Star Equity’s higher probable upside, research analysts clearly believe Star Equity is more favorable than Willdan Group.
Summary
Willdan Group beats Star Equity on 11 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 Willdan Group
Willdan Group, Inc., together with its subsidiaries, provides professional, technical, and consulting services primarily in the United States. It operates in two segments, Energy, and Engineering and Consulting. The Energy segment offers comprehensive audit and surveys, program design and implementation, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and software and data analytics, as well as energy consulting and engineering, turnkey facility and infrastructure projects, and customer support services. The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services. This segment also offers district administration, financial consulting, and federal compliance services. It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies. The company was founded in 1964 and is headquartered in Anaheim, California.
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