Analyzing Marubeni (OTCMKTS:MARUY) and Star Equity (NASDAQ:STRR)

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

Insider and Institutional Ownership

0.1% of Marubeni shares are held by institutional investors. Comparatively, 3.8% of Star Equity shares are held by institutional investors. 33.5% of Star Equity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Marubeni has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marubeni	6.60%	13.11%	5.58%
Star Equity	-4.18%	-4.04%	-2.40%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marubeni	$54.91 billion	0.99	$3.59 billion	$22.03	15.02
Star Equity	$172.16 million	0.25	-$5.92 million	($2.63)	-4.44

Marubeni has higher revenue and earnings than Star Equity. Star Equity is trading at a lower price-to-earnings ratio than Marubeni, 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 Marubeni and Star Equity, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marubeni	0	2	0	0	2.00
Star Equity	2	1	1	1	2.20

Star Equity has a consensus target price of $28.00, indicating a potential upside of 139.93%. Given Star Equity’s stronger consensus rating and higher probable upside, analysts plainly believe Star Equity is more favorable than Marubeni.

Summary

Marubeni beats Star Equity on 9 of the 15 factors compared between the two stocks.

About Marubeni

Marubeni Corporation engages in various business activities. It manufactures, wholesales, and retails apparel, footwear, home furnishing and sport goods, industrial and textile materials, tire and rubber materials, and household and nursing care products; develops uranium, nuclear fuel cycle, iron ore, coking coal, copper mines, and related equipment and services; smelts and refines aluminum and magnesium; leases temporary steel construction materials; explores for, develops, and produces oil and gas; manages infrastructure funds; and develops and manages real estate. The company also offers insurance, technical, ICT, and logistic services; agri-inputs; fertilizer and crop protection product contracting services; crop protection product formulations; wood chips, biomass fuels, pulp and waste papers, paper, paperboards, sanitary, and building and construction materials; engineering, procurement, and construction services; and operation and maintenance services. It trades in fertilizers, dairy, agricultural, and marine products; sugar, processed food, beverages raw materials, and commercial use food materials; grains, oilseeds, feed ingredients, compound feeds, fresh and processed meat, petrochemicals, plastics, salts, chlor-alkalis, life science products, electronic materials, fertilizer materials, and inorganic mineral resources and chemicals; steelmaking raw materials, ferroalloys, nonferrous metals, and steel products; cement and ingots related materials; and petroleum and LPG. The company engages in infrastructure; water; automotive finance; power generation; power service and retail; natural gas; hydrogen; and fuel ammonia businesses. It owns, purchases, operates, leases, sells, and charters aerospace and ship products; leases refrigerated trailers, commercial vehicles, and freight cars; and sells, trades in, leases, finances, and services construction and industrial machinery, and mobility products. The company was founded in 1858 and is based in Tokyo, Japan.

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.