Himalaya Shipping (HSHP) vs. The Competition Financial Contrast

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Himalaya Shipping and its competitors, as provided 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 50.03%. Given Himalaya Shipping’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Himalaya Shipping has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Himalaya Shipping and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	$1.51 million	3.49
Himalaya Shipping Competitors	$827.52 million	$120.80 million	5.66

Himalaya Shipping’s competitors have higher revenue and earnings than Himalaya Shipping. Himalaya Shipping is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Himalaya Shipping and its competitors’ 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 & 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 competitors have a beta of 1.15, suggesting that their average stock price is 15% more volatile than the S&P 500.

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.

Institutional & Insider Ownership

22.3% of Himalaya Shipping shares are held by institutional investors. Comparatively, 43.7% of shares of all “Deep sea foreign transportation of freight” companies are held by institutional investors. 14.5% of shares of all “Deep sea foreign transportation of freight” companies 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.

Summary

Himalaya Shipping competitors 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.