Contrasting Southland (NASDAQ:SLND) and Shimmick (NASDAQ:SHIM)

Southland (NASDAQ:SLND) and Shimmick (NASDAQ:SHIM) are both small-cap construction companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Southland	-1.66%	-14.55%	-3.27%
Shimmick	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Southland and Shimmick, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southland	0	1	1	0	2.50
Shimmick	0	0	3	0	3.00

Southland currently has a consensus price target of $7.50, suggesting a potential upside of 72.81%. Shimmick has a consensus price target of $10.50, suggesting a potential upside of 183.78%. Given Shimmick’s stronger consensus rating and higher possible upside, analysts clearly believe Shimmick is more favorable than Southland.

Institutional and Insider Ownership

2.9% of Southland shares are held by institutional investors. Comparatively, 6.9% of Shimmick shares are held by institutional investors. 79.0% of Southland shares are held by company 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.

Earnings and Valuation

This table compares Southland and Shimmick’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southland	$1.16 billion	0.18	-$19.25 million	($0.42)	-10.33
Shimmick	$632.81 million	0.15	-$2.55 million	N/A	N/A

Shimmick has lower revenue, but higher earnings than Southland.

Summary

Shimmick beats Southland on 8 of the 11 factors compared between the two stocks.

About Southland

Southland Holdings, Inc. engages in specialty infrastructure construction business in North America and internationally. The company operates through two segments, Civil and Transportation. The Civil segment designs and constructs water pipelines, pump stations, lift stations, water and wastewater treatment plants, concrete and structural steel, outfall, and tunneling. The Transportation segment designs and constructs bridges, roadways, marine, dredging, ship terminals and piers, and specialty structures and facilities, as well as convention centers, sports stadiums, marine facilities, and ferris wheels. Southland Holdings, Inc. was founded in 1900 and is headquartered in Grapevine, Texas.

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.