LGN (NASDAQ:LGN) & Shimmick (NASDAQ:SHIM) Head to Head Review

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

Risk and Volatility

Shimmick has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, LGN has a beta of 3.42, suggesting that its share price is 242% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Shimmick and LGN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	2	0	2.33
LGN	1	2	10	1	2.79

Shimmick currently has a consensus target price of $5.50, indicating a potential upside of 114.84%. LGN has a consensus target price of $96.67, indicating a potential upside of 146.85%. Given LGN’s stronger consensus rating and higher probable upside, analysts clearly believe LGN is more favorable than Shimmick.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	-3.81%	N/A	-4.34%
LGN	-1.20%	4.33%	1.23%

Valuation & Earnings

This table compares Shimmick and LGN”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	0.21	-$25.58 million	($0.45)	-5.69
LGN	$2.55 billion	1.66	-$59.78 million	$0.40	97.90

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

Institutional and Insider Ownership

6.9% of Shimmick shares are held by institutional investors. 62.9% of Shimmick shares are held by company insiders. Comparatively, 0.0% of LGN shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

LGN 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 LGN

Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.