Analyzing Himalaya Shipping (HSHP) & Its Peers

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 companies based on the strength of its profitability, risk, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & 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. 14.5% 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 is poised for long-term growth.

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%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Himalaya Shipping and its competitors, as reported 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 49.99%. 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.

Valuation & Earnings

This table compares Himalaya Shipping and its competitors top-line revenue, earnings per share (EPS) 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.

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.

Risk and Volatility

Himalaya Shipping has a beta of 2.36, suggesting that its share 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 share price is 15% more volatile than the S&P 500.

Summary

Himalaya Shipping competitors 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.