Shimmick (NASDAQ:SHIM – Get Free Report) and 374Water (NASDAQ:SCWO – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Shimmick and 374Water’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% |
| 374Water | N/A | -338.77% | -189.45% |
Risk & Volatility
Shimmick has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, 374Water has a beta of -0.38, meaning that its stock price is 138% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shimmick | 1 | 0 | 2 | 0 | 2.33 |
| 374Water | 1 | 0 | 0 | 0 | 1.00 |
Shimmick presently has a consensus price target of $5.50, suggesting a potential upside of 46.67%. Given Shimmick’s stronger consensus rating and higher possible upside, analysts plainly believe Shimmick is more favorable than 374Water.
Insider and Institutional Ownership
6.9% of Shimmick shares are held by institutional investors. Comparatively, 12.2% of 374Water shares are held by institutional investors. 62.9% of Shimmick shares are held by insiders. Comparatively, 16.3% of 374Water shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Shimmick and 374Water”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 | 0.28 | -$25.58 million | ($0.58) | -6.47 |
| 374Water | $220,000.00 | 163.86 | -$20.98 million | ($0.86) | -2.40 |
374Water has lower revenue, but higher earnings than Shimmick. Shimmick is trading at a lower price-to-earnings ratio than 374Water, indicating that it is currently the more affordable of the two stocks.
Summary
Shimmick beats 374Water 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 374Water
374Water Inc. provides a technology that transforms wet wastes into recoverable resources in the United States. The company transforms wet wastes, including sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemicals. It offers AirSCWO systems, a waste stream treatment system based on supercritical water oxidation that are used to treat various hazardous and non-hazardous waste streams. It serves Industrial, agricultural, defense, oil and gas, waste management, sanitation project, environmental remediation and compliance, and municipal markets. 374Water Inc. is based in Durham, North Carolina.
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