International Seaways (NYSE:INSW – Get Free Report) and ZIM Integrated Shipping Services (NYSE:ZIM – Get Free Report) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Profitability
This table compares International Seaways and ZIM Integrated Shipping Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Seaways | 55.39% | 21.04% | 15.60% |
| ZIM Integrated Shipping Services | 1.56% | -0.26% | -0.09% |
Earnings & Valuation
This table compares International Seaways and ZIM Integrated Shipping Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Seaways | $843.30 million | 4.77 | $309.26 million | $10.98 | 7.41 |
| ZIM Integrated Shipping Services | $6.90 billion | 0.43 | $479.20 million | $0.81 | 30.75 |
ZIM Integrated Shipping Services has higher revenue and earnings than International Seaways. International Seaways is trading at a lower price-to-earnings ratio than ZIM Integrated Shipping Services, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
International Seaways has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500. Comparatively, ZIM Integrated Shipping Services has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for International Seaways and ZIM Integrated Shipping Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Seaways | 0 | 1 | 5 | 1 | 3.00 |
| ZIM Integrated Shipping Services | 2 | 4 | 0 | 1 | 2.00 |
International Seaways presently has a consensus price target of $83.50, suggesting a potential upside of 2.69%. ZIM Integrated Shipping Services has a consensus price target of $17.83, suggesting a potential downside of 28.39%. Given International Seaways’ stronger consensus rating and higher probable upside, equities research analysts plainly believe International Seaways is more favorable than ZIM Integrated Shipping Services.
Dividends
International Seaways pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. ZIM Integrated Shipping Services pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. International Seaways pays out 4.4% of its earnings in the form of a dividend. ZIM Integrated Shipping Services pays out 7.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ZIM Integrated Shipping Services has increased its dividend for 1 consecutive years. International Seaways is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
67.3% of International Seaways shares are owned by institutional investors. Comparatively, 21.4% of ZIM Integrated Shipping Services shares are owned by institutional investors. 1.7% of International Seaways shares are owned by company insiders. Comparatively, 1.3% of ZIM Integrated Shipping Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
International Seaways beats ZIM Integrated Shipping Services on 12 of the 17 factors compared between the two stocks.
About International Seaways
International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments: Crude Tankers and Product Carriers. As of December 31, 2023, the company owned a fleet of 73 vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.
About ZIM Integrated Shipping Services
ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of March 1, 2024, it operated a fleet of 150 vessels, which included 134 container vessels and 16 vehicle transport vessels; and as of December 31, 2023, it operated a network of 67 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.
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