Head to Head Analysis: Shimmick (NASDAQ:SHIM) versus Zurn Elkay Water Solutions Cor (NYSE:ZWS)

Shimmick (NASDAQ:SHIM) and Zurn Elkay Water Solutions Cor (NYSE:ZWS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Valuation & Earnings

This table compares Shimmick and Zurn Elkay Water Solutions Cor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$480.24 million	0.18	-$124.75 million	($1.71)	-1.40
Zurn Elkay Water Solutions Cor	$1.66 billion	4.78	$160.20 million	$1.12	42.34

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

Profitability

This table compares Shimmick and Zurn Elkay Water Solutions Cor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimmick	-11.21%	N/A	-20.10%
Zurn Elkay Water Solutions Cor	11.59%	16.26%	9.66%

Risk & Volatility

Shimmick has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Zurn Elkay Water Solutions Cor has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Insider & Institutional Ownership

6.9% of Shimmick shares are owned by institutional investors. Comparatively, 83.3% of Zurn Elkay Water Solutions Cor shares are owned by institutional investors. 67.1% of Shimmick shares are owned by company insiders. Comparatively, 2.6% of Zurn Elkay Water Solutions Cor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Shimmick and Zurn Elkay Water Solutions Cor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	0	0	1.00
Zurn Elkay Water Solutions Cor	0	3	3	1	2.71

Zurn Elkay Water Solutions Cor has a consensus target price of $42.83, indicating a potential downside of 9.68%. Given Zurn Elkay Water Solutions Cor’s stronger consensus rating and higher probable upside, analysts plainly believe Zurn Elkay Water Solutions Cor is more favorable than Shimmick.

Summary

Zurn Elkay Water Solutions Cor beats Shimmick on 14 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 Zurn Elkay Water Solutions Cor

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, thermostatic mixing valves, PEX pipings, fittings, and installation tools under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, chemical drainage systems; and interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn and Green Turtle brands. In addition, it develops, manufactures, and markets remote tank monitoring devices, alarms, software, and services. Further, the company offers sensor-operated flush valves under the AquaSense, Aquaflush, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel products under the Just Manufacturing brand name, which include stainless steel sinks and plumbing fixtures, and various types of sinks, as well as drinking water dispensing and filtration products under the Elkay and Halsey Taylor brands. It distributes to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was incorporated in 1892 and is headquartered in Milwaukee, Wisconsin.