Analyzing Aeries Technology (NASDAQ:AERT) and Star Equity (NASDAQ:STRR)

Aeries Technology (NASDAQ:AERTGet Free Report) and Star Equity (NASDAQ:STRRGet Free Report) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Aeries Technology 3.68% -114.69% 6.81%
Star Equity -4.35% -4.21% -2.39%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Aeries Technology and Star Equity, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aeries Technology 0 1 0 0 2.00
Star Equity 1 1 1 1 2.50

Star Equity has a consensus target price of $28.00, indicating a potential upside of 181.97%. Given Star Equity’s stronger consensus rating and higher probable upside, analysts clearly believe Star Equity is more favorable than Aeries Technology.

Valuation & Earnings

This table compares Aeries Technology and Star Equity”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aeries Technology $70.01 million 0.52 $2.55 million $0.43 16.05
Star Equity $172.16 million 0.21 -$5.92 million ($3.06) -3.25

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

Institutional & Insider Ownership

99.2% of Aeries Technology shares are held by institutional investors. Comparatively, 3.8% of Star Equity shares are held by institutional investors. 63.6% of Aeries Technology shares are held by insiders. Comparatively, 31.6% of Star Equity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Aeries Technology has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Summary

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

About Aeries Technology

(Get Free Report)

Aeries Technology, Inc. operates as a professional services and consulting partner in the North America, Asia Pacific, and internationally. The company offers management consultancy services for private equity sponsors and their portfolio companies, including software solutions, product management, IT infrastructure, information and cyber security, ERP and CRM platform management, business process management, and digital transformation services. The company was founded in 2012 and is headquartered in Singapore.

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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