Himalaya Shipping (HSHP) & Its Competitors Critical Contrast

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

Risk & Volatility

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

Valuation & Earnings

This table compares Himalaya Shipping and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	$1.51 million	3.31
Himalaya Shipping Competitors	$830.11 million	$120.80 million	5.53

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

Profitability

This table compares Himalaya Shipping and its rivals’ 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%

Dividends

Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 4.3%. 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 5.9% and pay out 23.9% of their earnings in the form of a dividend.

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. 14.7% of shares of all “Deep sea foreign transportation of freight” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Himalaya Shipping and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	1	0	0	0	1.00
Himalaya Shipping Competitors	278	1668	1876	93	2.46

As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 55.57%. Given Himalaya Shipping’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Himalaya Shipping has less favorable growth aspects than its rivals.

Summary

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

Himalaya Shipping Company Profile

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.