Financial Survey: Fiverr International (NYSE:FVRR) vs. Star Equity (NASDAQ:STRR)

Fiverr International (NYSE:FVRR) and Star Equity (NASDAQ:STRR) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Earnings & Valuation

This table compares Fiverr International and Star Equity”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiverr International	$430.91 million	0.72	$20.98 million	$0.81	10.67
Star Equity	$172.16 million	0.22	-$5.92 million	($3.06)	-3.37

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

Volatility and Risk

Fiverr International has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Fiverr International and Star Equity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiverr International	1	11	0	0	1.92
Star Equity	1	1	1	1	2.50

Fiverr International currently has a consensus target price of $12.56, suggesting a potential upside of 45.32%. Star Equity has a consensus target price of $28.00, suggesting a potential upside of 171.32%. Given Star Equity’s stronger consensus rating and higher possible upside, analysts plainly believe Star Equity is more favorable than Fiverr International.

Insider & Institutional Ownership

59.0% of Fiverr International shares are owned by institutional investors. Comparatively, 3.8% of Star Equity shares are owned by institutional investors. 15.9% of Fiverr International shares are owned by company insiders. Comparatively, 31.6% of Star Equity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fiverr International	7.18%	16.14%	8.37%
Star Equity	-4.35%	-4.21%	-2.39%

Summary

Fiverr International beats Star Equity on 10 of the 15 factors compared between the two stocks.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.

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.