Mastech Digital, Inc (MHH) vs Star Equity Holdings, Inc. (STRR)

Mastech Digital, Inc and Star Equity Holdings, Inc. are both Staffing & Employment Services companies. Mastech Digital, Inc is the larger, with a market value of $76.6M against $35.1M — 2.2× the size. Star Equity Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Mastech Digital, Inc trades at 68.9×. Star Equity Holdings, Inc. grew revenue faster over the last twelve months: 52.2% against −13.6%. Mastech Digital, Inc has the higher net margin (0.67% vs −5.27%) and the higher return on invested capital (0.85% vs −8.53%). Across the 19 metrics below, Mastech Digital, Inc leads on 11 and Star Equity Holdings, Inc. on 8.

Valuation

Metric MHH STRR Staffing & Employment Services median
P/E 68.87 n/m 23.57
P/S 0.44 0.17 0.28
P/B 0.81 0.59 1.24
Price to free cash flow 13.13 n/m 17.58
EV/EBITDA 9.72 n/m 11.38
EV/Sales 0.26 0.14 0.34
Earnings yield 1.45% (28.69%) 0.15%
Free cash flow yield 7.61% (28.09%) 0.39%

Profitability

Metric MHH STRR Staffing & Employment Services median
Gross margin 28.21% 42.04% 25.01%
Operating margin 0.44% (3.40%) 0.29%
Net margin 0.67% (5.27%) 0.04%
Free cash flow margin 3.36% (4.74%) 0.14%
Return on equity 1.27% (22.11%) 2.93%
Return on assets 1.02% (13.49%) 0.07%
Return on invested capital 0.85% (8.53%) 0.32%

Growth

Metric MHH STRR Staffing & Employment Services median
Revenue growth (TTM) (13.57%) 52.15% (2.94%)
EPS growth (last fiscal year) (82.14%) (16.35%) (21.61%)
Revenue growth, 5-year CAGR (0.28%) 11.16% 1.03%
Net income growth, 5-year CAGR (42.70%) 0.00% 0.00%

Health

Metric MHH STRR Staffing & Employment Services median
Debt to equity 0.00 0.09 0.04
Current ratio 4.27 1.96 1.75
Net debt to EBITDA (9.32) 6.09 (0.08)

Dividend

Metric MHH STRR Staffing & Employment Services median
Dividend yield — — 2.47%
Payout ratio — — 0.50

Size

Metric MHH STRR Staffing & Employment Services median
Market cap 76.62m 35.05m 461.40m

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