Head-To-Head Analysis: Himalaya Shipping (NYSE:HSHP) and TORM (NASDAQ:TRMD)

TORM (NASDAQ:TRMD) and Himalaya Shipping (NYSE:HSHP) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Dividends

TORM pays an annual dividend of $5.26 per share and has a dividend yield of 21.2%. Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. TORM pays out 67.4% of its earnings in the form of a dividend.

Volatility & Risk

TORM has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.63, indicating that its stock price is 163% more volatile than the S&P 500.

Insider and Institutional Ownership

73.9% of TORM shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 0.4% of TORM shares are held by 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 Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TORM	0	1	1	0	2.50
Himalaya Shipping	1	0	0	0	1.00

TORM currently has a consensus price target of $48.00, suggesting a potential upside of 93.24%. Given TORM’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TORM is more favorable than Himalaya Shipping.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TORM	$1.52 billion	N/A	$648.27 million	$7.80	3.18
Himalaya Shipping	$36.74 million	7.75	$1.51 million	N/A	N/A

TORM has higher revenue and earnings than Himalaya Shipping.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TORM	43.81%	36.06%	20.93%
Himalaya Shipping	N/A	N/A	N/A

Summary

TORM beats Himalaya Shipping on 11 of the 13 factors compared between the two stocks.

About TORM

TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.

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.