Star (NASDAQ:STHO – Get Free Report) and The RMR Group (NASDAQ:RMR – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Insider and Institutional Ownership
89.3% of Star shares are owned by institutional investors. Comparatively, 42.3% of The RMR Group shares are owned by institutional investors. 4.1% of Star shares are owned by company insiders. Comparatively, 54.7% of The RMR Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Star has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, The RMR Group has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star | $110.14 million | 1.04 | -$64.25 million | $1.21 | 7.86 |
| The RMR Group | $700.28 million | 0.89 | $17.60 million | $1.14 | 17.07 |
The RMR Group has higher revenue and earnings than Star. Star is trading at a lower price-to-earnings ratio than The RMR Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Star and The RMR Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star | 0 | 1 | 0 | 0 | 2.00 |
| The RMR Group | 0 | 2 | 2 | 0 | 2.50 |
The RMR Group has a consensus target price of $19.00, indicating a potential downside of 2.36%. Given The RMR Group’s stronger consensus rating and higher possible upside, analysts plainly believe The RMR Group is more favorable than Star.
Profitability
This table compares Star and The RMR Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star | 14.77% | -0.90% | -0.45% |
| The RMR Group | 3.10% | 2.96% | 1.71% |
Summary
The RMR Group beats Star on 9 of the 14 factors compared between the two stocks.
About Star
Star Holdings engages in the non-ground lease related commercial real estate businesses in the United States. Its portfolio primarily comprises interest in the Asbury Park Waterfront and Magnolia Green residential development projects. Star Holdings is based in New York, New York.
About The RMR Group
The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.
Receive News & Ratings for Star Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Star and related companies with MarketBeat.com's FREE daily email newsletter.
