Shimmick (NASDAQ:SHIM) versus 374Water (NASDAQ:SCWO) Critical Analysis

374Water (NASDAQ:SCWO) and Shimmick (NASDAQ:SHIM) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for 374Water and Shimmick, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
374Water	1	0	0	0	1.00
Shimmick	1	0	2	0	2.33

Shimmick has a consensus target price of $5.50, indicating a potential upside of 48.25%. Given Shimmick’s stronger consensus rating and higher probable upside, analysts plainly believe Shimmick is more favorable than 374Water.

Profitability

This table compares 374Water and Shimmick’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
374Water	N/A	-338.77%	-189.45%
Shimmick	-4.44%	N/A	-6.63%

Earnings and Valuation

This table compares 374Water and Shimmick”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
374Water	$220,000.00	166.25	-$20.98 million	($0.86)	-2.43
Shimmick	$458.77 million	0.30	-$25.58 million	($0.58)	-6.40

374Water has higher earnings, but lower revenue than Shimmick. Shimmick is trading at a lower price-to-earnings ratio than 374Water, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

374Water has a beta of -0.38, suggesting that its stock price is 138% less volatile than the S&P 500. Comparatively, Shimmick has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

12.2% of 374Water shares are held by institutional investors. Comparatively, 6.9% of Shimmick shares are held by institutional investors. 16.3% of 374Water shares are held by company insiders. Comparatively, 62.9% of Shimmick shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Shimmick beats 374Water on 9 of the 14 factors compared between the two stocks.

About 374Water

374Water Inc. provides a technology that transforms wet wastes into recoverable resources in the United States. The company transforms wet wastes, including sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemicals. It offers AirSCWO systems, a waste stream treatment system based on supercritical water oxidation that are used to treat various hazardous and non-hazardous waste streams. It serves Industrial, agricultural, defense, oil and gas, waste management, sanitation project, environmental remediation and compliance, and municipal markets. 374Water Inc. is based in Durham, North Carolina.

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.