Head to Head Analysis: Shimmick (NASDAQ:SHIM) vs. ARQ (NASDAQ:ARQ)

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

Earnings and Valuation

This table compares Shimmick and ARQ”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$492.84 million	0.40	-$25.58 million	($0.73)	-7.38
ARQ	$120.34 million	0.82	-$52.61 million	($1.27)	-1.80

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	-5.19%	N/A	-9.25%
ARQ	-43.72%	-1.99%	-1.52%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Shimmick and ARQ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	2	0	2.33
ARQ	1	1	2	1	2.60

Shimmick presently has a consensus target price of $5.50, indicating a potential upside of 2.04%. ARQ has a consensus target price of $7.50, indicating a potential upside of 227.51%. Given ARQ’s stronger consensus rating and higher possible upside, analysts plainly believe ARQ is more favorable than Shimmick.

Insider and Institutional Ownership

6.9% of Shimmick shares are held by institutional investors. Comparatively, 18.5% of ARQ shares are held by institutional investors. 67.1% of Shimmick shares are held by company insiders. Comparatively, 23.9% of ARQ shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Shimmick has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, ARQ has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.

Summary

ARQ beats Shimmick on 8 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 ARQ

Arq, Inc. is a holding company. It engages in the provision of environmental and emission control equipment to the power generation industry. The company operates through the following Segments: Refined Coal and Advanced Purification Technologies. The Refined Coal segment includes the Tinuum Group, Tinuum Services, and GWN Manager. The Advanced Purification Technologies segment refers to the sale of Activated Carbon Injection and Dry Sorbent Injection equipment systems, chemical sales, consulting services, and other sales related to the reduction of emissions in the coal-fired electric generation process and the electric utility industry. The company was founded in 1996 and is headquartered in Greenwood Village, CO.