Genco Shipping & Trading (NYSE:GNK – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Profitability
This table compares Genco Shipping & Trading and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genco Shipping & Trading | 9.15% | 6.46% | 4.83% |
| Himalaya Shipping | 31.44% | 32.83% | 6.13% |
Valuation and Earnings
This table compares Genco Shipping & Trading and Himalaya Shipping”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genco Shipping & Trading | $342.05 million | 3.46 | -$4.37 million | $0.91 | 29.80 |
| Himalaya Shipping | $131.90 million | 6.22 | $17.70 million | $1.13 | 15.57 |
Himalaya Shipping has lower revenue, but higher earnings than Genco Shipping & Trading. Himalaya Shipping is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
58.6% of Genco Shipping & Trading shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 2.4% of Genco Shipping & Trading shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Genco Shipping & Trading has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for Genco Shipping & Trading and Himalaya Shipping, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genco Shipping & Trading | 1 | 2 | 3 | 0 | 2.33 |
| Himalaya Shipping | 0 | 0 | 2 | 0 | 3.00 |
Genco Shipping & Trading presently has a consensus target price of $29.00, indicating a potential upside of 6.95%. Given Genco Shipping & Trading’s higher possible upside, analysts plainly believe Genco Shipping & Trading is more favorable than Himalaya Shipping.
Summary
Himalaya Shipping beats Genco Shipping & Trading on 8 of the 14 factors compared between the two stocks.
About Genco Shipping & Trading
Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels. The company was founded on September 27, 2004 and is headquartered in New York, NY.
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.
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