Analyzing Shimmick (NASDAQ:SHIM) and WillScot (NASDAQ:WSC)

WillScot (NASDAQ:WSC) and Shimmick (NASDAQ:SHIM) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares WillScot and Shimmick’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WillScot	-3.00%	21.62%	3.39%
Shimmick	-3.81%	N/A	-4.34%

Risk and Volatility

WillScot has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Shimmick has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares WillScot and Shimmick”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WillScot	$2.28 billion	1.48	-$52.99 million	($0.38)	-49.11
Shimmick	$492.84 million	0.29	-$25.58 million	($0.45)	-7.64

Shimmick has lower revenue, but higher earnings than WillScot. WillScot is trading at a lower price-to-earnings ratio than Shimmick, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for WillScot and Shimmick, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WillScot	1	7	3	0	2.18
Shimmick	1	0	2	0	2.33

WillScot presently has a consensus price target of $26.50, indicating a potential upside of 42.02%. Shimmick has a consensus price target of $5.50, indicating a potential upside of 59.88%. Given Shimmick’s stronger consensus rating and higher probable upside, analysts clearly believe Shimmick is more favorable than WillScot.

Institutional & Insider Ownership

95.8% of WillScot shares are owned by institutional investors. Comparatively, 6.9% of Shimmick shares are owned by institutional investors. 3.4% of WillScot shares are owned by insiders. Comparatively, 62.9% of Shimmick shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

WillScot beats Shimmick on 9 of the 14 factors compared between the two stocks.

About WillScot

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers. The company leases modular space and portable storage units to customers in the construction, commercial and industrial, retail and wholesale trade, energy and natural resources, education, government and institutions, and healthcare markets. The company offers its solutions primarily under the WillScot and Mobile Mini brand names. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. WillScot Mobile Mini Holdings Corp. is headquartered in Phoenix, Arizona.

About Shimmick

Shimmick Corporation provides water and other critical infrastructure solutions in the United States. The company undertakes water and wastewater treatment infrastructure; water storage and conveyance, including dams, levees, flood control systems, pump stations, and coastal protection infrastructure; and mass transit, bridges, and military infrastructure projects. It serves federal, state, and local governments. The company was formerly known as SCCI National Holdings, Inc. and changed its name to Shimmick Corporation in September 2023. Shimmick Corporation was founded in 1990 and is headquartered in Irvine, California. Shimmick Corporation operates as a subsidiary of GOHO, LLC.