Performance Shipping (NASDAQ:PSHG – Get Free Report) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Dividends
Performance Shipping pays an annual dividend of $0.10 per share and has a dividend yield of 4.8%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 2.3%. Performance Shipping pays out 10.9% of its earnings in the form of a dividend. Nippon Yusen Kabushiki Kaisha pays out 19.6% 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. Performance Shipping is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Performance Shipping and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Performance Shipping | 29.70% | 10.21% | 5.48% |
| Nippon Yusen Kabushiki Kaisha | 11.36% | 7.68% | 4.57% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Performance Shipping | 0 | 1 | 0 | 0 | 2.00 |
| Nippon Yusen Kabushiki Kaisha | 0 | 1 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
19.9% of Performance Shipping shares are owned by institutional investors. 0.4% of Performance Shipping shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Performance Shipping and Nippon Yusen Kabushiki Kaisha”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Performance Shipping | $113.13 million | 0.23 | $49.97 million | $0.92 | 2.26 |
| Nippon Yusen Kabushiki Kaisha | $16.10 billion | 1.06 | $1.40 billion | $0.97 | 8.69 |
Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Performance Shipping. Performance Shipping is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Performance Shipping has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
Summary
Performance Shipping beats Nippon Yusen Kabushiki Kaisha on 7 of the 13 factors compared between the two stocks.
About Performance Shipping
Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, Greece.
About Nippon Yusen Kabushiki Kaisha
Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.
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