Himalaya Shipping (NYSE:HSHP – Get Free Report) and Ardmore Shipping (NYSE:ASC – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Profitability
This table compares Himalaya Shipping and Ardmore Shipping’s 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% |
| Ardmore Shipping | 36.22% | 23.63% | 19.42% |
Earnings and Valuation
This table compares Himalaya Shipping and Ardmore Shipping”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Himalaya Shipping | $36.74 million | 7.70 | $1.51 million | N/A | N/A |
| Ardmore Shipping | $422.62 million | 1.18 | $116.81 million | $3.57 | 3.34 |
Insider & Institutional Ownership
22.3% of Himalaya Shipping shares are held by institutional investors. Comparatively, 62.2% of Ardmore Shipping shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Himalaya Shipping has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500. Comparatively, Ardmore Shipping has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.
Dividends
Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Ardmore Shipping pays an annual dividend of $0.72 per share and has a dividend yield of 6.0%. Ardmore Shipping pays out 20.2% of its earnings in the form of a dividend.
Analyst Ratings
This is a summary of current ratings and recommmendations for Himalaya Shipping and Ardmore Shipping, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
| Ardmore Shipping | 0 | 2 | 2 | 0 | 2.50 |
Ardmore Shipping has a consensus price target of $22.33, indicating a potential upside of 87.05%. Given Ardmore Shipping’s stronger consensus rating and higher possible upside, analysts clearly believe Ardmore Shipping is more favorable than Himalaya Shipping.
Summary
Ardmore Shipping beats Himalaya Shipping on 10 of the 13 factors compared between the two stocks.
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.
About Ardmore Shipping
Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide. The company's fleet consists of 22 owned vessels including 21 Eco-design and 1 Eco-mod vessel, and four chartered-in vessels. It serves oil majors, oil companies, oil and chemical traders, chemical companies, and pooling service providers. Ardmore Shipping Corporation was founded in 2010 and is headquartered in Pembroke, Bermuda.
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