Which company would likely have higher-priced shares, if both are similar?

The public company is likely to have higher-priced shares primarily due to the liquidity and transparency premiums associated with being publicly traded. Public companies are accessible to a larger pool of investors, which generally creates higher demand for their shares. This increased demand can drive up the price of the shares.

Moreover, public companies are subject to strict regulatory requirements that mandate transparency in their financial reporting and operational practices. This additional layer of scrutiny can enhance investor confidence, further supporting a higher valuation in the marketplace. The ease of buying and selling shares of public companies provides investors with liquidity that private companies often lack, as private shares are typically harder to trade, leading to a discount in their market value.

In contrast, while a private company might have lower operational costs or less ownership dilution, these factors do not inherently lead to higher share prices. Operational costs primarily affect profitability and valuation rather than immediate share price levels. Similarly, although less ownership dilution can protect existing shareholders' stakes, it does not directly influence the trading price of shares in the manner seen with public companies. The limited number of investors in a private company also contributes to lower overall share valuation compared to the broader market available for public shares.