Flex LNG (NYSE:FLNG – Get Free Report) and Diana Shipping (NYSE:DSX – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Insider and Institutional Ownership
48.7% of Diana Shipping shares are held by institutional investors. 0.3% of Flex LNG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Flex LNG and Diana Shipping, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flex LNG | 0 | 3 | 0 | 0 | 2.00 |
| Diana Shipping | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares Flex LNG and Diana Shipping”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flex LNG | $351.03 million | 4.01 | $117.68 million | $1.83 | 14.27 |
| Diana Shipping | $218.56 million | 1.04 | $12.75 million | $0.11 | 17.86 |
Flex LNG has higher revenue and earnings than Diana Shipping. Flex LNG is trading at a lower price-to-earnings ratio than Diana Shipping, indicating that it is currently the more affordable of the two stocks.
Dividends
Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 11.5%. Diana Shipping pays an annual dividend of $0.04 per share and has a dividend yield of 2.0%. Flex LNG pays out 163.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diana Shipping pays out 36.4% of its earnings in the form of a dividend.
Profitability
This table compares Flex LNG and Diana Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flex LNG | 27.84% | 14.41% | 4.35% |
| Diana Shipping | 9.36% | 4.09% | 1.76% |
Risk & Volatility
Flex LNG has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Diana Shipping has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.
Summary
Flex LNG beats Diana Shipping on 11 of the 15 factors compared between the two stocks.
About Flex LNG
FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.
About Diana Shipping
Diana Shipping Inc. provides shipping transportation services. The company transports a range of dry bulk cargoes, including commodities, such as iron ore, coal, grain, and other materials in shipping routes worldwide. As of March 1, 2024, it operated a fleet of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 9 Ultramax, and 6 Panamax. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was incorporated in 1999 and is based in Athens, Greece.
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