Reviewing WillScot (NASDAQ:WSC) and Shimmick (NASDAQ:SHIM)

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

Risk and Volatility

Shimmick has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, WillScot has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Profitability

This table compares Shimmick and WillScot’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%
WillScot	-3.00%	21.62%	3.39%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$492.84 million	0.28	-$25.58 million	($0.45)	-7.42
WillScot	$2.28 billion	1.44	-$52.99 million	($0.38)	-47.82

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

Insider & Institutional Ownership

6.9% of Shimmick shares are held by institutional investors. Comparatively, 95.8% of WillScot shares are held by institutional investors. 62.9% of Shimmick shares are held by company insiders. Comparatively, 3.4% of WillScot shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Shimmick and WillScot, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	2	0	2.33
WillScot	1	7	3	0	2.18

Shimmick presently has a consensus target price of $5.50, suggesting a potential upside of 64.67%. WillScot has a consensus target price of $26.50, suggesting a potential upside of 45.84%. Given Shimmick’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Shimmick is more favorable than WillScot.

Summary

WillScot beats Shimmick 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 WillScot

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers. The company leases modular space and portable storage units to customers in the construction, commercial and industrial, retail and wholesale trade, energy and natural resources, education, government and institutions, and healthcare markets. The company offers its solutions primarily under the WillScot and Mobile Mini brand names. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. WillScot Mobile Mini Holdings Corp. is headquartered in Phoenix, Arizona.