Shimmick (NASDAQ:SHIM – Get Free Report) and LGN (NASDAQ:LGN – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Profitability
This table compares Shimmick and LGN’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% |
| LGN | -1.20% | 4.33% | 1.23% |
Risk & Volatility
Shimmick has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, LGN has a beta of 3.43, indicating that its stock price is 243% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Shimmick and LGN, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shimmick | 1 | 0 | 2 | 0 | 2.33 |
| LGN | 1 | 2 | 10 | 1 | 2.79 |
Shimmick presently has a consensus target price of $5.50, suggesting a potential upside of 119.12%. LGN has a consensus target price of $96.67, suggesting a potential upside of 148.95%. Given LGN’s stronger consensus rating and higher probable upside, analysts clearly believe LGN is more favorable than Shimmick.
Earnings and Valuation
This table compares Shimmick and LGN”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 | 0.21 | -$25.58 million | ($0.45) | -5.58 |
| LGN | $2.55 billion | 1.65 | -$59.78 million | $0.40 | 97.07 |
Shimmick has higher earnings, but lower revenue than LGN. Shimmick is trading at a lower price-to-earnings ratio than LGN, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
6.9% of Shimmick shares are held by institutional investors. 62.9% of Shimmick shares are held by company insiders. Comparatively, 0.0% of LGN shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
LGN beats Shimmick on 12 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 LGN
Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.
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