Critical Analysis: Shimmick (NASDAQ:SHIM) & Ferrovial (NASDAQ:FER)

Shimmick (NASDAQ:SHIM) and Ferrovial (NASDAQ:FER) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	-12.90%	-134.28%	-14.83%
Ferrovial	N/A	N/A	N/A

Valuation and Earnings

This table compares Shimmick and Ferrovial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$524.16 million	0.14	-$2.55 million	N/A	N/A
Ferrovial	$8.84 billion	3.61	N/A	N/A	N/A

Ferrovial has higher revenue and earnings than Shimmick.

Institutional & Insider Ownership

6.9% of Shimmick shares are held by institutional investors. 77.0% of Shimmick shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Shimmick and Ferrovial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	0	3	0	0	2.00
Ferrovial	0	0	1	0	3.00

Shimmick presently has a consensus target price of $3.00, suggesting a potential upside of 26.05%. Ferrovial has a consensus target price of $48.00, suggesting a potential upside of 11.71%. Given Shimmick’s higher probable upside, analysts clearly believe Shimmick is more favorable than Ferrovial.

Summary

Ferrovial beats Shimmick on 7 of the 10 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 Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.