Shimmick (NASDAQ:SHIM – Get Free Report) and Matrix Service (NASDAQ:MTRX – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
6.9% of Shimmick shares are owned by institutional investors. Comparatively, 78.4% of Matrix Service shares are owned by institutional investors. 62.9% of Shimmick shares are owned by insiders. Comparatively, 1.9% of Matrix Service shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Shimmick and Matrix Service, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shimmick | 1 | 0 | 2 | 0 | 2.33 |
| Matrix Service | 1 | 0 | 1 | 1 | 2.67 |
Shimmick presently has a consensus price target of $5.50, indicating a potential upside of 137.07%. Matrix Service has a consensus price target of $16.50, indicating a potential upside of 69.93%. Given Shimmick’s higher possible upside, equities research analysts plainly believe Shimmick is more favorable than Matrix Service.
Profitability
This table compares Shimmick and Matrix Service’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% |
| Matrix Service | -0.30% | 5.32% | 1.20% |
Risk & Volatility
Shimmick has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Matrix Service has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Earnings and Valuation
This table compares Shimmick and Matrix Service”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shimmick | $492.84 million | 0.19 | -$25.58 million | ($0.45) | -5.16 |
| Matrix Service | $873.63 million | 0.31 | -$2.58 million | ($0.09) | -107.89 |
Matrix Service has higher revenue and earnings than Shimmick. Matrix Service is trading at a lower price-to-earnings ratio than Shimmick, indicating that it is currently the more affordable of the two stocks.
Summary
Matrix Service beats Shimmick on 11 of the 15 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 Matrix Service
Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.
Receive News & Ratings for Shimmick Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shimmick and related companies with MarketBeat.com's FREE daily email newsletter.
