Analyzing Energy Services of America (NASDAQ:ESOA) & Shimmick (NASDAQ:SHIM)

Shimmick (NASDAQ:SHIM) and Energy Services of America (NASDAQ:ESOA) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Shimmick and Energy Services of America, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	2	0	2.33
Energy Services of America	0	1	1	0	2.50

Shimmick presently has a consensus price target of $5.50, suggesting a potential upside of 50.52%. Energy Services of America has a consensus price target of $25.00, suggesting a potential upside of 115.05%. Given Energy Services of America’s stronger consensus rating and higher probable upside, analysts plainly believe Energy Services of America is more favorable than Shimmick.

Valuation & Earnings

This table compares Shimmick and Energy Services of America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$492.84 million	0.31	-$25.58 million	($0.45)	-8.12
Energy Services of America	$467.37 million	N/A	N/A	$0.18	63.52

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

Institutional and Insider Ownership

6.9% of Shimmick shares are owned by institutional investors. Comparatively, 2.1% of Energy Services of America shares are owned by institutional investors. 62.9% of Shimmick shares are owned by company insiders. Comparatively, 44.7% of Energy Services of America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	-3.81%	N/A	-4.34%
Energy Services of America	N/A	N/A	N/A

Summary

Energy Services of America beats Shimmick on 6 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 Energy Services of America

Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.