Head-To-Head Analysis: Himalaya Shipping (HSHP) & Its Competitors

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

Dividends

Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 4.1%. Himalaya Shipping pays out 14.4% of its earnings in the form of a dividend. As a group, “Deep sea foreign transportation of freight” companies pay a dividend yield of 5.8% and pay out 24.0% of their earnings in the form of a dividend.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	$1.51 million	3.50
Himalaya Shipping Competitors	$827.52 million	$120.80 million	5.69

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.

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%

Volatility and Risk

Himalaya Shipping has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Himalaya Shipping’s peers have a beta of 1.15, suggesting that their average stock price is 15% more volatile than the S&P 500.

Institutional and Insider 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Himalaya Shipping and its peers, as reported 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	278	1674	1876	94	2.46

As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 48.93%. Given Himalaya Shipping’s peers stronger consensus rating and higher possible upside, analysts clearly believe Himalaya Shipping has less favorable growth aspects than its peers.

Summary

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

About Himalaya Shipping

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.