Critical Analysis: Himalaya Shipping (HSHP) and The Competition

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 rivals? We will compare Himalaya Shipping to related companies based on the strength of its profitability, valuation, earnings, analyst recommendations, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares Himalaya Shipping and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	$1.51 million	2.68
Himalaya Shipping Competitors	$830.87 million	$120.80 million	6.02

Himalaya Shipping’s rivals have higher revenue and earnings than Himalaya Shipping. Himalaya Shipping is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for Himalaya Shipping and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	1	0	0	0	1.00
Himalaya Shipping Competitors	282	1691	1877	96	2.45

As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 42.98%. Given Himalaya Shipping’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Himalaya Shipping has less favorable growth aspects than its rivals.

Risk & Volatility

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

Profitability

This table compares Himalaya Shipping and its rivals’ 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%

Dividends

Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 3.8%. 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.

Insider & Institutional Ownership

22.3% of Himalaya Shipping shares are held by institutional investors. Comparatively, 43.7% of shares of all “Deep sea foreign transportation of freight” companies are held by institutional investors. 14.5% of shares of all “Deep sea foreign transportation of freight” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Himalaya Shipping rivals 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.