City Developments (OTCMKTS:CDEVY) & Star (NASDAQ:STHO) Financial Analysis

Star (NASDAQ:STHO) and City Developments (OTCMKTS:CDEVY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility and Risk

Star has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, City Developments has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Valuation and Earnings

This table compares Star and City Developments”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star	$110.14 million	0.89	-$64.25 million	($4.89)	-1.66
City Developments	$2.75 billion	2.05	$482.08 million	N/A	N/A

City Developments has higher revenue and earnings than Star.

Insider and Institutional Ownership

89.3% of Star shares are held by institutional investors. 3.7% of Star shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Star and City Developments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star	1	0	0	0	1.00
City Developments	0	0	1	0	3.00

Profitability

This table compares Star and City Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star	-58.33%	0.14%	0.07%
City Developments	N/A	N/A	N/A

Summary

City Developments beats Star on 6 of the 11 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 City Developments

City Developments Limited (CDL) is a leading global real estate company with a network spanning 112 locations in 29 countries and regions. Listed on the Singapore Exchange, the Group is one of the largest companies by market capitalisation. Its income-stable and geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, shopping malls and integrated developments. With a proven track record of over 55 years in real estate development, investment and management, CDL has developed over 47,000 homes and owns over 23 million square feet of gross floor area in residential, commercial and hospitality assets globally. Its diversified global land bank offers 3.5 million square feet of land area.