Reviewing Matrix Service (NASDAQ:MTRX) & Shimmick (NASDAQ:SHIM)

Matrix Service (NASDAQ:MTRX) and Shimmick (NASDAQ:SHIM) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Earnings and Valuation

This table compares Matrix Service and Shimmick”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matrix Service	$873.63 million	0.33	-$2.58 million	($0.09)	-112.67
Shimmick	$492.84 million	0.19	-$25.58 million	($0.45)	-5.11

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Matrix Service	-0.30%	5.32%	1.20%
Shimmick	-3.81%	N/A	-4.34%

Insider & Institutional Ownership

78.4% of Matrix Service shares are held by institutional investors. Comparatively, 6.9% of Shimmick shares are held by institutional investors. 1.9% of Matrix Service shares are held by insiders. Comparatively, 62.9% of Shimmick shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Matrix Service has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Shimmick has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Matrix Service and Shimmick, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matrix Service	1	0	1	1	2.67
Shimmick	1	0	2	0	2.33

Matrix Service presently has a consensus price target of $16.50, indicating a potential upside of 62.72%. Shimmick has a consensus price target of $5.50, indicating a potential upside of 139.13%. Given Shimmick’s higher probable upside, analysts clearly believe Shimmick is more favorable than Matrix Service.

Summary

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

About Matrix Service

Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

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.