Star (NASDAQ:STHO) & Daito Trust Construction (OTCMKTS:DIFTY) Critical Contrast

Daito Trust Construction (OTCMKTS:DIFTY) and Star (NASDAQ:STHO) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

89.3% of Star shares are held by institutional investors. 3.7% of Star 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.

Profitability

This table compares Daito Trust Construction and Star’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daito Trust Construction	N/A	N/A	N/A
Star	-125.63%	-33.77%	-17.79%

Risk & Volatility

Daito Trust Construction has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Star has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares Daito Trust Construction and Star”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daito Trust Construction	$12.10 billion	0.57	$619.46 million	$0.13	38.69
Star	$113.30 million	0.92	-$86.75 million	($11.08)	-0.74

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Daito Trust Construction and Star, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daito Trust Construction	0	0	0	0	0.00
Star	1	0	0	0	1.00

Summary

Daito Trust Construction beats Star on 7 of the 12 factors compared between the two stocks.

About Daito Trust Construction

Daito Trust Construction Co.,Ltd. designs, constructs, and rents apartments and condominiums in Japan. It operates through three segments: Construction, Real Estate, and Finance. The company design and construct rental housing and other structure construction; ironwork and construction; building management and renovation, and whole building leasing; rental housing tenant guarantor services; advertising; and LP gas supply businesses. Further, the company operates day service centers and childcare facilities; operates hotels in Malaysia; and bridge financing for general contractors. Additionally, it sells short-term insurance; offers credit card settlements services; rental apartment and condominium brokering services; provides real estate management and asset succession consulting services; and offers document shipping and destruction, printing, and administrative services. The company also engages in development and sale of investment-type apartment properties, and management of facility reservation portal sites. Daito Trust Construction Co.,Ltd. was incorporated in 1974 and is headquartered in Tokyo, Japan.

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.