Critical Contrast: Republic Services (NYSE:RSG) vs. Shimmick (NASDAQ:SHIM)

Republic Services (NYSE:RSG) and Shimmick (NASDAQ:SHIM) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Insider & Institutional Ownership

57.7% of Republic Services shares are owned by institutional investors. Comparatively, 6.9% of Shimmick shares are owned by institutional investors. 0.1% of Republic Services shares are owned by company insiders. Comparatively, 67.1% of Shimmick shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Republic Services and Shimmick, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Services	0	12	11	0	2.48
Shimmick	1	0	2	0	2.33

Republic Services presently has a consensus price target of $245.15, indicating a potential upside of 16.41%. Shimmick has a consensus price target of $5.50, indicating a potential upside of 42.86%. Given Shimmick’s higher possible upside, analysts clearly believe Shimmick is more favorable than Republic Services.

Earnings and Valuation

This table compares Republic Services and Shimmick”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Republic Services	$16.70 billion	3.88	$2.14 billion	$6.97	30.21
Shimmick	$492.84 million	0.29	-$25.58 million	($0.58)	-6.64

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

Volatility & Risk

Republic Services has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Shimmick has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Republic Services	13.00%	18.57%	6.53%
Shimmick	-4.44%	N/A	-6.63%

Summary

Republic Services beats Shimmick on 11 of the 14 factors compared between the two stocks.

About Republic Services

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based 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.