Contrasting Fiverr International (NYSE:FVRR) and Star Equity (NASDAQ:STRR)

Fiverr International (NYSE:FVRR) and Star Equity (NASDAQ:STRR) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Valuation and Earnings

This table compares Fiverr International and Star Equity”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiverr International	$430.91 million	0.72	$20.98 million	$0.81	10.65
Star Equity	$172.16 million	0.21	-$5.92 million	($3.06)	-3.26

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

Insider and Institutional Ownership

59.0% of Fiverr International shares are held by institutional investors. Comparatively, 3.8% of Star Equity shares are held by institutional investors. 15.9% of Fiverr International shares are held by company insiders. Comparatively, 31.6% of Star Equity shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Fiverr International has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Fiverr International and Star Equity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiverr International	1	11	0	0	1.92
Star Equity	1	1	1	1	2.50

Fiverr International currently has a consensus price target of $11.94, indicating a potential upside of 38.36%. Star Equity has a consensus price target of $28.00, indicating a potential upside of 180.28%. Given Star Equity’s stronger consensus rating and higher probable upside, analysts plainly believe Star Equity is more favorable than Fiverr International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fiverr International	7.18%	16.14%	8.37%
Star Equity	-4.35%	-4.21%	-2.39%

Summary

Fiverr International beats Star Equity on 10 of the 15 factors compared between the two stocks.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.

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.