Reviewing Fundamental Global (NASDAQ:FGF) & Star Equity (NASDAQ:STRR)

Fundamental Global (NASDAQ:FGF) and Star Equity (NASDAQ:STRR) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fundamental Global	N/A	-30.02%	-14.24%
Star Equity	-3.22%	-2.33%	-1.57%

Insider and Institutional Ownership

3.1% of Fundamental Global shares are owned by institutional investors. Comparatively, 3.8% of Star Equity shares are owned by institutional investors. 34.4% of Fundamental Global shares are owned by insiders. Comparatively, 10.4% of Star Equity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Fundamental Global has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Valuation and Earnings

This table compares Fundamental Global and Star Equity”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fundamental Global	$13.26 million	0.27	-$1.15 million	($17.76)	-0.16
Star Equity	$140.06 million	0.26	-$4.77 million	($1.58)	-6.60

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

Analyst Ratings

This is a summary of current ratings and target prices for Fundamental Global and Star Equity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fundamental Global	0	0	0	0	0.00
Star Equity	2	1	0	0	1.33

Star Equity has a consensus price target of $5.00, suggesting a potential downside of 52.06%. Given Star Equity’s stronger consensus rating and higher possible upside, analysts plainly believe Star Equity is more favorable than Fundamental Global.

Summary

Star Equity beats Fundamental Global on 7 of the 13 factors compared between the two stocks.

About Fundamental Global

Fundamental Global Inc. engages in reinsurance, merchant banking, and asset management business. The company offers initial public offering services. It also offers specialty property and casualty reinsurance services. In addition, the company provides investment advisory services. The company was formerly known as Ballantyne Strong, Inc. and changed its name to FG Group Holdings Inc. in December 2022. Fundamental Global Inc. was founded in 1932 and is based in Mooresville, North Carolina.

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.