Critical Survey: Mitsubishi (OTCMKTS:MSBHF) and Star Equity (NASDAQ:STRR)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Equity	$140.06 million	0.25	-$4.77 million	($1.58)	-6.48
Mitsubishi	$122.26 billion	0.84	$6.27 billion	$1.19	21.67

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.

Profitability

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

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

Analyst Recommendations

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

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

Star Equity presently has a consensus target price of $13.00, indicating a potential upside of 26.95%. Given Star Equity’s higher probable upside, equities research analysts clearly believe Star Equity is more favorable than Mitsubishi.

Institutional & Insider 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

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

Summary

Mitsubishi beats Star Equity on 10 of the 14 factors compared between the two stocks.

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.

About Mitsubishi

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.