Analyzing XCHG (NASDAQ:XCH) and Star Group (NYSE:SGU)

Star Group (NYSE:SGU) and XCHG (NASDAQ:XCH) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares Star Group and XCHG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Group	$1.84 billion	0.24	$73.50 million	$1.58	8.32
XCHG	$42.20 million	1.72	-$11.94 million	($0.08)	-15.27

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

Insider and Institutional Ownership

40.4% of Star Group shares are owned by institutional investors. 20.4% of Star Group shares are owned by 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.

Analyst Ratings

This is a breakdown of current ratings for Star Group and XCHG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Group	0	0	1	0	3.00
XCHG	1	1	0	0	1.50

Profitability

This table compares Star Group and XCHG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Group	4.16%	23.03%	7.61%
XCHG	N/A	N/A	N/A

Risk and Volatility

Star Group has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, XCHG has a beta of -1.15, indicating that its stock price is 215% less volatile than the S&P 500.

Summary

Star Group beats XCHG on 12 of the 13 factors compared between the two stocks.

About Star Group

Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.

About XCHG

XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.