Himalaya Shipping (HSHP) and Its Peers Critical Contrast

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

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%

Risk & Volatility

Himalaya Shipping has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Himalaya Shipping’s competitors have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Himalaya Shipping and its competitors, as provided 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	279	1681	1876	95	2.45

As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 44.83%. Given Himalaya Shipping’s competitors stronger consensus rating and higher probable 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%. As a group, “Deep sea foreign transportation of freight” companies pay a dividend yield of 5.6% and pay out 23.8% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Himalaya Shipping and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	$1.51 million	N/A
Himalaya Shipping Competitors	$830.45 million	$120.80 million	5.93

Himalaya Shipping’s competitors have higher revenue and earnings than Himalaya Shipping.

Insider and 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, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Himalaya Shipping competitors beat Himalaya Shipping on 12 of the 14 factors compared.

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.