Himalaya Shipping (NYSE:HSHP – Get Free Report) and Navigator (NYSE:NVGS – Get Free Report) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Institutional and Insider Ownership
22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 19.0% of Navigator shares are owned by institutional investors. 0.4% of Navigator shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock 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 3.9%. Navigator pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Navigator pays out 17.7% of its earnings in the form of a dividend.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Himalaya Shipping | $112.30 million | 1.80 | $1.51 million | N/A | N/A |
| Navigator | $564.28 million | 2.08 | $82.25 million | $1.13 | 14.20 |
Navigator has higher revenue and earnings than Himalaya Shipping.
Analyst Recommendations
This is a breakdown of current ratings for Himalaya Shipping and Navigator, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
| Navigator | 0 | 0 | 5 | 0 | 3.00 |
Navigator has a consensus target price of $21.60, suggesting a potential upside of 34.58%. Given Navigator’s stronger consensus rating and higher possible upside, analysts plainly believe Navigator is more favorable than Himalaya Shipping.
Profitability
This table compares Himalaya Shipping and Navigator’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% |
| Navigator | 14.48% | 7.40% | 4.23% |
Volatility and Risk
Himalaya Shipping has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Navigator has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
Summary
Navigator 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 Navigator
Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.
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