Himalaya Shipping (NYSE:HSHP – Get Free Report) and Scorpio Tankers (NYSE:STNG – Get Free Report) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 54.6% of Scorpio Tankers shares are owned by institutional investors. 7.3% of Scorpio Tankers shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Himalaya Shipping and Scorpio Tankers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
| Scorpio Tankers | 0 | 3 | 3 | 0 | 2.50 |
Valuation & Earnings
This table compares Himalaya Shipping and Scorpio Tankers”s top-line 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 | 7.91 | $1.51 million | N/A | N/A |
| Scorpio Tankers | $1.38 billion | 1.97 | $546.90 million | $13.95 | 3.85 |
Scorpio Tankers has higher revenue and earnings than Himalaya Shipping.
Dividends
Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.7%. Scorpio Tankers pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Scorpio Tankers pays out 11.5% of its earnings in the form of a dividend.
Profitability
This table compares Himalaya Shipping and Scorpio Tankers’ 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% |
| Scorpio Tankers | 52.40% | 22.56% | 15.35% |
Risk & Volatility
Himalaya Shipping has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.
Summary
Scorpio Tankers beats Himalaya Shipping on 11 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 Scorpio Tankers
Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.
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