Head to Head Survey: Himalaya Shipping (NYSE:HSHP) and Pangaea Logistics Solutions (NASDAQ:PANL)

Pangaea Logistics Solutions (NASDAQ:PANL) and Himalaya Shipping (NYSE:HSHP) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Pangaea Logistics Solutions and Himalaya Shipping, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pangaea Logistics Solutions	0	0	2	1	3.33
Himalaya Shipping	0	0	2	0	3.00

Risk & Volatility

Pangaea Logistics Solutions has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Institutional and Insider Ownership

60.2% of Pangaea Logistics Solutions shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 16.7% of Pangaea Logistics Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Pangaea Logistics Solutions pays an annual dividend of $0.40 per share and has a dividend yield of 4.5%. Himalaya Shipping pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Pangaea Logistics Solutions pays out 34.8% of its earnings in the form of a dividend. Himalaya Shipping pays out 4.4% 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.

Profitability

This table compares Pangaea Logistics Solutions and Himalaya Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pangaea Logistics Solutions	9.68%	13.64%	7.07%
Himalaya Shipping	31.44%	32.83%	6.13%

Earnings & Valuation

This table compares Pangaea Logistics Solutions and Himalaya Shipping”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pangaea Logistics Solutions	$632.04 million	0.92	$19.37 million	$1.15	7.69
Himalaya Shipping	$167.30 million	4.59	$17.70 million	$1.13	14.55

Pangaea Logistics Solutions has higher revenue and earnings than Himalaya Shipping. Pangaea Logistics Solutions is trading at a lower price-to-earnings ratio than Himalaya Shipping, indicating that it is currently the more affordable of the two stocks.

Summary

Pangaea Logistics Solutions beats Himalaya Shipping on 9 of the 15 factors compared between the two stocks.

About Pangaea Logistics Solutions

Pangaea Logistics Solutions Ltd. is a global provider of dry-bulk shipping and logistics services. The company transports commodities such as minerals, grain and other bulk cargoes, coordinating ocean carriage with related logistics services. Its operations include vessel ownership and chartering, cargo planning, port and terminal services, stevedoring, and cargo loading and unloading. Pangaea also operates specialized vessels, including ice-class ships designed to serve ports and routes with challenging ice conditions.

About Himalaya Shipping

Himalaya Shipping Ltd. is a dry bulk shipping company incorporated in Bermuda. It owns and operates Newcastlemax vessels, large bulk carriers designed to transport commodities such as iron ore, coal and grain. The company’s fleet is equipped with dual-fuel engines that can run on liquefied natural gas as well as conventional marine fuel. Its vessels serve international bulk shipping routes, carrying cargo between major commodity-producing and consuming regions. Himalaya Shipping began building its fleet in the early 2020s and became a publicly traded company in 2023.