Star Equity (NASDAQ:STRR – Get Free Report) and Korn/Ferry International (NYSE:KFY – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations for Star Equity and Korn/Ferry International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 1 | 2 | 1 | 1 | 2.40 |
| Korn/Ferry International | 0 | 1 | 4 | 0 | 2.80 |
Star Equity currently has a consensus target price of $28.00, indicating a potential upside of 143.06%. Korn/Ferry International has a consensus target price of $78.50, indicating a potential downside of 5.84%. Given Star Equity’s higher probable upside, analysts clearly believe Star Equity is more favorable than Korn/Ferry International.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $172.16 million | 0.25 | -$5.92 million | ($2.63) | -4.38 |
| Korn/Ferry International | $2.94 billion | 1.44 | $277.43 million | $5.24 | 15.91 |
Korn/Ferry International has higher revenue and earnings than Star Equity. Star Equity is trading at a lower price-to-earnings ratio than Korn/Ferry International, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Star Equity has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Korn/Ferry International has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
Profitability
This table compares Star Equity and Korn/Ferry International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Equity | -4.18% | -4.04% | -2.40% |
| Korn/Ferry International | 9.44% | 14.34% | 7.31% |
Insider and Institutional Ownership
3.8% of Star Equity shares are owned by institutional investors. Comparatively, 98.8% of Korn/Ferry International shares are owned by institutional investors. 31.6% of Star Equity shares are owned by insiders. Comparatively, 1.0% of Korn/Ferry International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Korn/Ferry International beats Star Equity on 12 of the 15 factors compared between the two stocks.
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.
About Korn/Ferry International
Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services. In addition, the company provides RPO, business project, professional search, and outsource recruiting solutions. Further, the company offers tech-enabled solutions that identify structures, roles, capabilities, and behaviors to drive businesses. It serves public and private companies, and middle market and emerging growth companies, as well as government and non-profit organizations. The company was formerly known as Korn/Ferry International and changed its name to Korn Ferry in January 2019. Korn Ferry was founded in 1969 and is based in Los Angeles, California.
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