Critical Review: IES (NASDAQ:IESC) & Shimmick (NASDAQ:SHIM)

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

Insider and Institutional Ownership

6.9% of Shimmick shares are owned by institutional investors. Comparatively, 86.6% of IES shares are owned by institutional investors. 62.9% of Shimmick shares are owned by company insiders. Comparatively, 56.4% of IES shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Shimmick has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, IES has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Shimmick and IES, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	2	0	2.33
IES	0	1	1	0	2.50

Shimmick presently has a consensus price target of $5.50, indicating a potential upside of 37.16%. IES has a consensus price target of $458.00, indicating a potential downside of 39.17%. Given Shimmick’s higher possible upside, analysts clearly believe Shimmick is more favorable than IES.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	-4.44%	N/A	-6.63%
IES	11.40%	35.70%	19.68%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$492.84 million	0.30	-$25.58 million	($0.58)	-6.91
IES	$3.37 billion	4.45	$303.06 million	$22.51	33.45

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

Summary

IES beats Shimmick on 11 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 IES

IES Holdings, Inc. engages in the design and installation of integrated electrical and technology systems, and provides infrastructure products and services in the United States. The Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.