Shimizu (OTCMKTS:SHMUY) versus Hillman Solutions (NASDAQ:HLMN) Critical Survey

Shimizu (OTCMKTS:SHMUY) and Hillman Solutions (NASDAQ:HLMN) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Volatility and Risk

Shimizu has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Hillman Solutions has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Earnings and Valuation

This table compares Shimizu and Hillman Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimizu	$12.77 billion	0.98	$435.70 million	$4.15	17.84
Hillman Solutions	$1.55 billion	1.13	$40.31 million	$0.21	42.48

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

Profitability

This table compares Shimizu and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimizu	5.18%	4.52%	1.68%
Hillman Solutions	2.60%	9.57%	4.91%

Analyst Recommendations

This is a summary of recent ratings and price targets for Shimizu and Hillman Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimizu	0	0	0	0	0.00
Hillman Solutions	0	3	4	0	2.57

Hillman Solutions has a consensus price target of $11.33, suggesting a potential upside of 27.06%. Given Hillman Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Hillman Solutions is more favorable than Shimizu.

Insider & Institutional Ownership

98.1% of Hillman Solutions shares are owned by institutional investors. 4.9% of Hillman Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Hillman Solutions beats Shimizu on 10 of the 14 factors compared between the two stocks.

About Shimizu

Shimizu Corporation, together with its subsidiaries, engages in the construction, development, engineering, and life cycle valuation businesses in Japan and internationally. The company proposes, plans, designs, builds, repairs, manages, operates, and maintains offices, plants, schools, hospitals, and other buildings, such as nursing homes, rehabilitation centers, temples, shrines, and architectures; offers design, build, and renovation for tunnels, bridges, dams, urban infrastructure, energy facilities, and other public works; provides construction for manufacturing facilities, high-rise buildings, hospitals, bridges, subways, and other projects; and develops and rents real estate properties, including condominiums, data centers, office buildings, logistics facilities, and other properties. It also offers engineering, procurement, and construction services in solar and wind power projects, environmental clean-up engineering, turn-key order fulfillment of plants, and ICT systems and engineering projects. In addition, the company provides facility operation and management services; infrastructure management, maintenance, and concession services; and generates power using renewable energy and sells electricity, as well as involved in commercialization of smart cities and provision of services using ICT technology. Further, it engages in the lease and sale of construction equipment and materials; provision of interior finishing and rebar works; insurance agency, security, and travel agency services; supply of PCR test kits; and rental of various tower cranes, crawler cranes, and other construction machinery and equipment. Additionally, the company offers construction equipment consulting services, such as construction planning, maintenance, and management services; property and building management services; and real estate consulting and brokerage services, as well as tenant leasing services. Shimizu Corporation was founded in 1804 and is headquartered in Tokyo, Japan.

About Hillman Solutions

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.