Financial Analysis: Star Equity (NASDAQ:STRR) & Mitsubishi (OTCMKTS:MSBHF)

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

Earnings and Valuation

This table compares Mitsubishi and Star Equity”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitsubishi $122.26 billion 0.83 $6.27 billion $1.19 21.51
Star Equity $140.06 million 0.26 -$4.77 million ($1.58) -6.67

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

Analyst Ratings

This is a summary of recent recommendations for Mitsubishi and Star Equity, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitsubishi 0 2 0 0 2.00
Star Equity 2 1 1 0 1.75

Star Equity has a consensus price target of $13.00, suggesting a potential upside of 23.40%. Given Star Equity’s higher probable upside, analysts plainly believe Star Equity is more favorable than Mitsubishi.

Insider & Institutional Ownership

3.8% of Star Equity shares are owned by institutional investors. 10.4% of Star Equity shares are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Mitsubishi 3.86% 6.97% 3.20%
Star Equity -3.22% -2.33% -1.57%

Risk & Volatility

Mitsubishi has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Summary

Mitsubishi beats Star Equity on 9 of the 13 factors compared between the two stocks.

About Mitsubishi

(Get Free Report)

Mitsubishi Corporation engages in the natural gas, industrial materials and infrastructure, petroleum and chemicals, mineral resources, automotive and mobility, food and consumer industry, power solution, and urban development businesses worldwide. The Natural Gas segment engages in the development and production of natural gas/oil; and liquified natural gas business. Its Industrial Materials segment engages in sale, trading, and development of materials, including steel products, silica sand, cement, ready-mixed concrete, carbon materials, PVC, and functional materials for the automobile, mobility, construction, and infrastructure industries. The Petroleum & Chemicals segment invests in, develops, and trades in crude oil and oil products, LPG, ethylene, methanol, salt, ammonia, plastics, and fertilizers. Its Mineral Resources segment invests in and develops metallurgical coal, copper, iron ore, and aluminum. The Industrial Infrastructure segment trades in the field of energy infrastructure, industrial plants, machinery tools, construction and agricultural machinery, elevators, escalators, facility management, ships, and aerospace related equipment. Its Automotive & Mobility segment produces, finances, and sells passenger and commercial cars; and mobility services. The Food Industry segment trades, develops, and sells food resources, fresh foods, consumer goods, and food ingredients. Its Consumer Industry segment supplies products and services a range of fields, including retail and distribution, logistics, healthcare, apparel, and tire, etc. The Power Solution segment is involved in the power and water related businesses, including power generation and transmission, power trading and retail, and development of hydrogen energy sources. Its Urban Development segment engages in the leasing; and urban development, infrastructure, and real estate development, operation, and management businesses. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.

About Star Equity

(Get Free Report)

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.

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