Himalaya Shipping (HSHP) and The Competition Critical Survey

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

Risk & Volatility

Himalaya Shipping has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500. Comparatively, Himalaya Shipping’s competitors have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices 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	280	1688	1876	96	2.45

As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 44.35%. Given Himalaya Shipping’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Himalaya Shipping has less favorable growth aspects than its competitors.

Dividends

Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 3.9%. Himalaya Shipping pays out 10.3% of its earnings in the form of a dividend. As a group, “Deep sea foreign transportation of freight” companies pay a dividend yield of 5.5% and pay out 23.6% of their earnings in the form of a dividend.

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	2.66
Himalaya Shipping Competitors	$836.15 million	$120.80 million	6.00

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%

Insider & Institutional 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 insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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.