Critical Contrast: Himalaya Shipping (HSHP) versus Its Rivals

Himalaya Shipping (NYSE:HSHP) is one of 57 public companies in the “Deep sea foreign transportation of freight” industry, but how does it weigh in compared to its peers? We will compare Himalaya Shipping to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Dividends

Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 4.0%. Himalaya Shipping pays out 10.3% of its earnings in the form of a dividend. As a group, “Deep sea foreign transportation of freight” companies pay a dividend yield of 5.5% and pay out 23.8% of their earnings in the form of a dividend.

Profitability

This table compares Himalaya Shipping and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Himalaya Shipping	21.93%	15.72%	3.14%
Himalaya Shipping Competitors	31.53%	16.20%	8.24%

Analyst Recommendations

This is a summary of current recommendations and price targets for Himalaya Shipping and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	1	0	0	0	1.00
Himalaya Shipping Competitors	282	1691	1877	96	2.45

As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 43.13%. Given Himalaya Shipping’s peers stronger consensus rating and higher possible upside, analysts plainly believe Himalaya Shipping has less favorable growth aspects than its peers.

Insider and Institutional Ownership

22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 43.7% of shares of all “Deep sea foreign transportation of freight” companies are owned by institutional investors. 14.5% of shares of all “Deep sea foreign transportation of freight” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Himalaya Shipping and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	$1.51 million	2.59
Himalaya Shipping Competitors	$831.45 million	$120.80 million	6.02

Himalaya Shipping’s peers have higher revenue and earnings than Himalaya Shipping. Himalaya Shipping is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Himalaya Shipping has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500. Comparatively, Himalaya Shipping’s peers have a beta of 1.12, indicating that their average stock price is 12% more volatile than the S&P 500.

Summary

Himalaya Shipping peers beat Himalaya Shipping on 13 of the 15 factors compared.

Himalaya Shipping Company Profile

Himalaya Shipping Ltd. provides dry bulk shipping services worldwide. The company operates a fleet of vessels. It serves major commodity trading, commodity and energy transition, and multi-modal transport companies. Himalaya Shipping Ltd. was incorporated in 2021 and is based in Hamilton, Bermuda.