Waste Connections (NYSE:WCN) vs. Shimmick (NASDAQ:SHIM) Head-To-Head Analysis

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

Risk & Volatility

Waste Connections has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Shimmick has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Waste Connections and Shimmick, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waste Connections	0	4	14	4	3.00
Shimmick	1	0	2	0	2.33

Waste Connections currently has a consensus price target of $203.35, suggesting a potential upside of 26.71%. Shimmick has a consensus price target of $5.50, suggesting a potential upside of 4.96%. Given Waste Connections’ stronger consensus rating and higher possible upside, analysts plainly believe Waste Connections is more favorable than Shimmick.

Institutional & Insider Ownership

86.1% of Waste Connections shares are owned by institutional investors. Comparatively, 6.9% of Shimmick shares are owned by institutional investors. 0.3% of Waste Connections shares are owned by company insiders. Comparatively, 77.0% of Shimmick shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Waste Connections and Shimmick’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waste Connections	10.97%	16.49%	6.45%
Shimmick	-5.19%	N/A	-9.25%

Earnings & Valuation

This table compares Waste Connections and Shimmick”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waste Connections	$9.47 billion	4.33	$1.08 billion	$4.10	39.14
Shimmick	$492.84 million	0.39	-$25.58 million	($0.73)	-7.18

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

Summary

Waste Connections beats Shimmick on 13 of the 15 factors compared between the two stocks.

About Waste Connections

Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.

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.