GFL Environmental (NYSE:GFL) & Shimmick (NASDAQ:SHIM) Financial Survey

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimmick	$492.84 million	0.29	-$25.58 million	($0.73)	-5.37
GFL Environmental	$4.73 billion	3.37	$2.74 billion	$6.80	6.56

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Shimmick and GFL Environmental, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimmick	1	0	2	0	2.33
GFL Environmental	0	3	11	1	2.87

Shimmick currently has a consensus price target of $5.50, indicating a potential upside of 40.31%. GFL Environmental has a consensus price target of $56.67, indicating a potential upside of 27.10%. Given Shimmick’s higher possible upside, research analysts plainly believe Shimmick is more favorable than GFL Environmental.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimmick	-5.19%	N/A	-9.25%
GFL Environmental	56.61%	3.66%	1.50%

Volatility & Risk

Shimmick has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, GFL Environmental has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

6.9% of Shimmick shares are held by institutional investors. Comparatively, 64.7% of GFL Environmental shares are held by institutional investors. 67.1% of Shimmick shares are held by company insiders. Comparatively, 8.7% of GFL Environmental shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

GFL Environmental beats Shimmick on 13 of the 15 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 GFL Environmental

GFL Environmental Inc. offers non-hazardous solid waste management and environmental services in Canada and the United States. It offers solid waste management, liquid waste management, and soil remediation services, including collection, transportation, transfer, recycling, and disposal services for municipal, residential, and commercial, and industrial customers. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.