Pentair (NYSE:PNR – Get Free Report) and Shimmick (NASDAQ:SHIM – Get Free Report) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Institutional and Insider Ownership
92.4% of Pentair shares are owned by institutional investors. Comparatively, 6.9% of Shimmick shares are owned by institutional investors. 1.5% of Pentair shares are owned by company insiders. Comparatively, 77.0% of Shimmick shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Pentair has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Shimmick has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Pentair | 1 | 3 | 11 | 2 | 2.82 |
Shimmick | 1 | 0 | 0 | 0 | 1.00 |
Pentair currently has a consensus target price of $116.50, indicating a potential upside of 6.58%. Given Pentair’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pentair is more favorable than Shimmick.
Valuation & Earnings
This table compares Pentair and Shimmick”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Pentair | $4.08 billion | 4.39 | $625.40 million | $3.66 | 29.87 |
Shimmick | $480.24 million | 0.18 | -$124.75 million | ($1.71) | -1.42 |
Pentair has higher revenue and earnings than Shimmick. Shimmick is trading at a lower price-to-earnings ratio than Pentair, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pentair and Shimmick’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Pentair | 14.86% | 21.62% | 11.88% |
Shimmick | -11.21% | N/A | -20.10% |
Summary
Pentair beats Shimmick on 14 of the 15 factors compared between the two stocks.
About Pentair
Pentair plc provides various water solutions in the United States, Western Europe, China, Eastern Europe, Latin America, the Middle East, Southeast Asia, Australia, Canada, and Japan. The company operates through three segments: Flow, Water Solutions, and Pool. The Flow segment designs, manufactures, and sells fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles for fluid delivery, ion exchange, desalination, food and beverage, separation technologies in the oil and gas industry, residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, circulation and transfer, fire suppression, flood control, agricultural irrigation, and crop spray in residential, commercial, and industrial markets. The Water Solutions segment provides commercial and residential water treatment products and systems, including pressure tanks, control valves, activated carbon products, commercial ice machines, conventional filtration products, and point-of-entry and point-of-use water treatment systems, as well as installation and preventative services for use in residential whole home water filtration, drinking water filtration, and water softening solutions, as well as commercial total water management and filtration in foodservice operations. The Pool segment provides residential and commercial pool equipment and accessories comprising pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment, and pool accessories for applications in residential and commercial pool maintenance, pool repair, renovation, service, and construction and aquaculture solutions. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.
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.
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