Critical Contrast: Granite Construction (NYSE:GVA) versus Shimmick (NASDAQ:SHIM)

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

Valuation and Earnings

This table compares Shimmick and Granite Construction’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$632.81 million	0.12	-$2.55 million	N/A	N/A
Granite Construction	$3.51 billion	0.68	$43.60 million	$0.76	71.68

Granite Construction has higher revenue and earnings than Shimmick.

Insider & Institutional Ownership

6.9% of Shimmick shares are owned by institutional investors. 0.5% of Granite Construction shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	N/A	N/A	N/A
Granite Construction	1.24%	14.15%	5.67%

Analyst Ratings

This is a summary of recent recommendations and price targets for Shimmick and Granite Construction, as provided by MarketBeat.

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

Shimmick presently has a consensus target price of $10.50, suggesting a potential upside of 250.00%. Granite Construction has a consensus target price of $57.00, suggesting a potential upside of 4.63%. Given Shimmick’s stronger consensus rating and higher possible upside, research analysts clearly believe Shimmick is more favorable than Granite Construction.

Summary

Granite Construction beats Shimmick on 7 of the 11 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 Granite Construction

Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar storage, and power related projects. The Materials segment is involved in the production of aggregates, asphalt concrete, liquid asphalt, and recycled materials production for internal use in our construction projects and sale to third parties. It also offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, railways, residential development, and energy development; and provides construction management professional services. It serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was incorporated in 1922 and is headquartered in Watsonville, California.