Financial Analysis: Granite Construction (NYSE:GVA) vs. Shimmick (NASDAQ:SHIM)

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

Earnings and Valuation

This table compares Granite Construction and Shimmick’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Construction	$3.51 billion	0.67	$43.60 million	$0.76	70.80
Shimmick	$632.81 million	0.12	-$2.55 million	N/A	N/A

Granite Construction has higher revenue and earnings than Shimmick.

Profitability

This table compares Granite Construction and Shimmick’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Construction	1.24%	14.15%	5.67%
Shimmick	N/A	N/A	N/A

Insider & Institutional Ownership

6.9% of Shimmick shares are held by institutional investors. 0.5% of Granite Construction shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Granite Construction and Shimmick, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Construction	1	0	1	0	2.00
Shimmick	0	0	3	0	3.00

Granite Construction currently has a consensus price target of $57.00, indicating a potential upside of 5.93%. Shimmick has a consensus price target of $10.50, indicating a potential upside of 244.26%. Given Shimmick’s stronger consensus rating and higher possible upside, analysts plainly believe Shimmick is more favorable than Granite Construction.

Summary

Granite Construction beats Shimmick on 7 of the 11 factors compared between the two stocks.

About Granite Construction

Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar storage, and power related projects. The Materials segment is involved in the production of aggregates, asphalt concrete, liquid asphalt, and recycled materials production for internal use in our construction projects and sale to third parties. It also offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, railways, residential development, and energy development; and provides construction management professional services. It serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was incorporated in 1922 and is headquartered in Watsonville, California.

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.