Comparing Republic Services (NYSE:RSG) & Shimmick (NASDAQ:SHIM)

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

Volatility and Risk

Republic Services has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Shimmick has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Republic Services	13.00%	18.57%	6.53%
Shimmick	-4.44%	N/A	-6.63%

Earnings & Valuation

This table compares Republic Services and Shimmick”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Republic Services	$16.59 billion	3.94	$2.14 billion	$6.97	30.51
Shimmick	$492.84 million	0.26	-$25.58 million	($0.58)	-6.10

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

Institutional and Insider Ownership

57.7% of Republic Services shares are held by institutional investors. Comparatively, 6.9% of Shimmick shares are held by institutional investors. 0.1% of Republic Services shares are held by company insiders. Comparatively, 67.1% of Shimmick shares are held 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 breakdown of current recommendations and price targets for Republic Services and Shimmick, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Services	0	11	11	0	2.50
Shimmick	1	0	2	0	2.33

Republic Services currently has a consensus target price of $243.26, indicating a potential upside of 14.40%. Shimmick has a consensus target price of $5.50, indicating a potential upside of 55.37%. Given Shimmick’s higher probable upside, analysts clearly believe Shimmick is more favorable than Republic Services.

Summary

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

About Republic Services

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based in Phoenix, Arizona.

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.