Star Equity (NASDAQ:STRR) vs. Pixie Dust Technologies (NASDAQ:PXDT) Financial Analysis

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

Institutional & Insider Ownership

3.8% of Star Equity shares are held by institutional investors. Comparatively, 0.4% of Pixie Dust Technologies shares are held by institutional investors. 28.8% of Star Equity shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Star Equity and Pixie Dust Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Equity	-14.65%	-5.74%	-3.34%
Pixie Dust Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Star Equity and Pixie Dust Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Equity	0	0	0	0	N/A
Pixie Dust Technologies	0	0	1	0	3.00

Pixie Dust Technologies has a consensus target price of $5.21, indicating a potential upside of 171.35%. Given Pixie Dust Technologies’ higher possible upside, analysts plainly believe Pixie Dust Technologies is more favorable than Star Equity.

Valuation and Earnings

This table compares Star Equity and Pixie Dust Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Equity	$47.15 million	0.29	$25.13 million	$6.50	0.65
Pixie Dust Technologies	$6.30 million	4.63	-$12.53 million	N/A	N/A

Star Equity has higher revenue and earnings than Pixie Dust Technologies.

Summary

Pixie Dust Technologies beats Star Equity on 6 of the 10 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 Pixie Dust Technologies

Pixie Dust Technologies, Inc., a technology company, focuses on personal care and diversity, and workspace and digital transformation businesses primarily in Japan. It offers SonoRepro, an ultrasonic non-contact vibrotactile stimulation scalp care device; VUEVO, a series of directional voice arrival detection devices for individuals with deaf and hard-of-hearing; and kikippa, an acoustic stimulation device functioning as a desk-top speaker. The company also provides iwasemi, a sound-absorbing or sound-proofing material for architectural and interior design firms; hackke, a location positioning technology; KOTOWARI, a technology offering spatial analysis data; and magickiri, a planning services and monitoring service, which monitors human behavior and analyzes the customer's environment on the customer's behalf. In addition, it operates Pixie Nest, a membership forum, which hosts meetings and distributes information to facilitate solving social issues. The company was incorporated in 2017 and is headquartered in Tokyo, Japan.