Quest Resource (NASDAQ:QRHC) versus Shimmick (NASDAQ:SHIM) Critical Comparison

Shimmick (NASDAQ:SHIM) and Quest Resource (NASDAQ:QRHC) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	1	0	2.00
Quest Resource	1	2	0	0	1.67

Shimmick currently has a consensus price target of $6.00, indicating a potential upside of 68.54%. Quest Resource has a consensus price target of $2.25, indicating a potential upside of 0.90%. Given Shimmick’s stronger consensus rating and higher possible upside, research analysts plainly believe Shimmick is more favorable than Quest Resource.

Insider and Institutional Ownership

6.9% of Shimmick shares are owned by institutional investors. Comparatively, 48.2% of Quest Resource shares are owned by institutional investors. 67.1% of Shimmick shares are owned by insiders. Comparatively, 22.9% of Quest Resource shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	-12.33%	N/A	-22.96%
Quest Resource	-8.89%	-12.96%	-3.70%

Volatility and Risk

Shimmick has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Valuation & Earnings

This table compares Shimmick and Quest Resource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$480.24 million	0.27	-$124.75 million	($1.78)	-2.00
Quest Resource	$288.53 million	0.16	-$15.06 million	($1.11)	-2.01

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

Summary

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

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.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.