Head to Head Contrast: ZIM Integrated Shipping Services (NYSE:ZIM) vs. Himalaya Shipping (NYSE:HSHP)

Himalaya Shipping (NYSE:HSHP) and ZIM Integrated Shipping Services (NYSE:ZIM) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

Himalaya Shipping pays an annual dividend of $0.60 per share and has a dividend yield of 7.0%. ZIM Integrated Shipping Services pays an annual dividend of $0.92 per share and has a dividend yield of 3.8%. ZIM Integrated Shipping Services pays out -4.3% of its earnings in the form of a dividend.

Volatility and Risk

Himalaya Shipping has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500. Comparatively, ZIM Integrated Shipping Services has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Himalaya Shipping and ZIM Integrated Shipping Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	1	0	0	0	1.00
ZIM Integrated Shipping Services	4	0	1	0	1.40

ZIM Integrated Shipping Services has a consensus price target of $14.84, indicating a potential downside of 38.78%. Given ZIM Integrated Shipping Services’ stronger consensus rating and higher probable upside, analysts plainly believe ZIM Integrated Shipping Services is more favorable than Himalaya Shipping.

Insider and Institutional Ownership

22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 21.4% of ZIM Integrated Shipping Services shares are owned by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Himalaya Shipping and ZIM Integrated Shipping Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himalaya Shipping	$36.74 million	9.29	$1.51 million	N/A	N/A
ZIM Integrated Shipping Services	$5.16 billion	0.56	-$2.70 billion	($21.17)	-1.15

Himalaya Shipping has higher earnings, but lower revenue than ZIM Integrated Shipping Services.

Profitability

This table compares Himalaya Shipping and ZIM Integrated Shipping Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Himalaya Shipping	N/A	N/A	N/A
ZIM Integrated Shipping Services	-32.81%	2.89%	0.86%

Summary

ZIM Integrated Shipping Services beats Himalaya Shipping on 8 of the 14 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 ZIM Integrated Shipping Services

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of March 1, 2024, it operated a fleet of 150 vessels, which included 134 container vessels and 16 vehicle transport vessels; and as of December 31, 2023, it operated a network of 67 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.