Star Equity (NASDAQ:STRR) vs. IAC (NASDAQ:IAC) Financial Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IAC	-4.35%	-2.43%	-1.62%
Star Equity	-3.44%	-1.17%	-0.73%

Analyst Recommendations

This is a breakdown of current recommendations for IAC and Star Equity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IAC	1	4	10	0	2.60
Star Equity	1	2	1	1	2.40

IAC currently has a consensus target price of $47.62, suggesting a potential upside of 17.74%. Star Equity has a consensus target price of $16.50, suggesting a potential upside of 71.70%. Given Star Equity’s higher probable upside, analysts clearly believe Star Equity is more favorable than IAC.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IAC	$2.39 billion	1.20	-$104.03 million	($1.33)	-30.41
Star Equity	$172.16 million	0.21	-$5.92 million	($2.05)	-4.69

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

Volatility and Risk

IAC has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

88.9% of IAC shares are owned by institutional investors. Comparatively, 3.8% of Star Equity shares are owned by institutional investors. 16.1% of IAC shares are owned by company insiders. Comparatively, 10.4% of Star Equity shares are owned by company 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.

Summary

IAC beats Star Equity on 8 of the 15 factors compared between the two stocks.

About IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.

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.