Contrasting IES (NASDAQ:IESC) & Shimmick (NASDAQ:SHIM)

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

Profitability

This table compares IES and Shimmick’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IES	11.40%	35.70%	19.68%
Shimmick	-4.44%	N/A	-6.63%

Risk and Volatility

IES has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Shimmick has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Institutional and Insider Ownership

86.6% of IES shares are owned by institutional investors. Comparatively, 6.9% of Shimmick shares are owned by institutional investors. 56.4% of IES shares are owned by insiders. Comparatively, 62.9% of Shimmick shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares IES and Shimmick”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IES	$3.37 billion	4.51	$303.06 million	$22.51	33.88
Shimmick	$458.77 million	0.35	-$25.58 million	($0.58)	-7.62

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

Analyst Ratings

This is a summary of current recommendations and price targets for IES and Shimmick, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IES	0	1	1	0	2.50
Shimmick	1	0	2	0	2.33

IES currently has a consensus target price of $458.00, suggesting a potential downside of 39.95%. Shimmick has a consensus target price of $5.50, suggesting a potential upside of 24.43%. Given Shimmick’s higher possible upside, analysts clearly believe Shimmick is more favorable than IES.

Summary

IES beats Shimmick on 11 of the 14 factors compared between the two stocks.

About IES

IES Holdings, Inc. engages in the design and installation of integrated electrical and technology systems, and provides infrastructure products and services in the United States. The Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.

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.