Star Equity (NASDAQ:STRR – Get Free Report) and Aclaris Therapeutics (NASDAQ:ACRS – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Risk and Volatility
Star Equity has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Aclaris Therapeutics has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.
Insider & Institutional Ownership
3.8% of Star Equity shares are held by institutional investors. Comparatively, 98.3% of Aclaris Therapeutics shares are held by institutional investors. 28.8% of Star Equity shares are held by company insiders. Comparatively, 6.4% of Aclaris Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Star Equity | -14.65% | -5.74% | -3.34% |
| Aclaris Therapeutics | -183.28% | -53.18% | -41.74% |
Earnings and Valuation
This table compares Star Equity and Aclaris Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Equity | $47.15 million | 0.27 | $25.13 million | $6.50 | 0.62 |
| Aclaris Therapeutics | $32.02 million | 2.69 | -$88.48 million | ($1.09) | -1.11 |
Star Equity has higher revenue and earnings than Aclaris Therapeutics. Aclaris Therapeutics is trading at a lower price-to-earnings ratio than Star Equity, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Star Equity and Aclaris Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Equity | 0 | 0 | 0 | 0 | N/A |
| Aclaris Therapeutics | 0 | 6 | 0 | 0 | 2.00 |
Aclaris Therapeutics has a consensus target price of $9.00, indicating a potential upside of 643.80%. Given Aclaris Therapeutics’ higher probable upside, analysts clearly believe Aclaris Therapeutics is more favorable than Star Equity.
Summary
Star Equity beats Aclaris Therapeutics on 8 of the 12 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 Aclaris Therapeutics
Aclaris Therapeutics, Inc. a clinical-stage biopharmaceutical company, engages in the development of novel drug candidates for immune-inflammatory diseases in the United States. The company operates through two segments, Therapeutics and Contract Research. The Therapeutics segment is involved in identifying and developing therapies to address significant unmet needs for immuno-inflammatory diseases. The Contract Research segment provides laboratory services. It develops Zunsemetinib (ATI-450), an MK2 inhibitor which is under Phase 1b/2 trials for the treatment of metastatic breast and pancreatic cancer; ATI-1777, a soft JAK 1/3 inhibitor, completed Phase 2b trails for the treatment of moderate to severe atopic dermatitis and other dermatologic conditions; and ATI-2138, an oral covalent inhibitor of ITK and JAK3 inhibitor under Phase 1 trials as a treatment for T cell-mediated autoimmune diseases. The company was incorporated in 2012 and is headquartered in Wayne, Pennsylvania.
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