Himalaya Shipping (NYSE:HSHP – Get Free Report) and Safe Bulkers (NYSE:SB – Get Free Report) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Profitability
This table compares Himalaya Shipping and Safe Bulkers’ 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 |
| Safe Bulkers | 31.11% | 10.78% | 6.45% |
Valuation & Earnings
This table compares Himalaya Shipping and Safe Bulkers”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Himalaya Shipping | $83.35 million | 3.39 | $1.51 million | N/A | N/A |
| Safe Bulkers | $284.40 million | 1.64 | $77.35 million | $0.80 | 5.48 |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Himalaya Shipping and Safe Bulkers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
| Safe Bulkers | 0 | 0 | 1 | 0 | 3.00 |
Safe Bulkers has a consensus target price of $6.00, indicating a potential upside of 36.99%. Given Safe Bulkers’ stronger consensus rating and higher possible upside, analysts clearly believe Safe Bulkers is more favorable than Himalaya Shipping.
Insider and Institutional Ownership
22.3% of Himalaya Shipping shares are held by institutional investors. Comparatively, 21.7% of Safe Bulkers shares are held by institutional investors. 40.3% of Safe Bulkers shares are held by company 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.
Dividends
Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Safe Bulkers pays an annual dividend of $0.20 per share and has a dividend yield of 4.6%. Safe Bulkers pays out 25.0% of its earnings in the form of a dividend.
Volatility and Risk
Himalaya Shipping has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500. Comparatively, Safe Bulkers has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Summary
Safe Bulkers beats Himalaya Shipping on 10 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 Safe Bulkers
Safe Bulkers, Inc., together with its subsidiaries, provides marine drybulk transportation services. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. The company has a fleet of 47 drybulk vessels having an aggregate carrying capacity of 4,719,600 deadweight tons. Its fleet consists of 10 Panamax class vessels, 11 Kamsarmax class vessels, 18 post-Panamax class vessels, and 8 Capesize class vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Monaco.
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