Comparing Himalaya Shipping (NYSE:HSHP) and ZIM Integrated Shipping Services (NYSE:ZIM)

ZIM Integrated Shipping Services (NYSE:ZIM) and Himalaya Shipping (NYSE:HSHP) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares ZIM Integrated Shipping Services and Himalaya Shipping”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM Integrated Shipping Services	$5.16 billion	0.56	-$2.70 billion	($21.17)	-1.15
Himalaya Shipping	$36.74 million	9.29	$1.51 million	N/A	N/A

Himalaya Shipping has lower revenue, but higher earnings than ZIM Integrated Shipping Services.

Insider & Institutional Ownership

21.4% of ZIM Integrated Shipping Services shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ZIM Integrated Shipping Services and Himalaya Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM Integrated Shipping Services	-32.81%	2.89%	0.86%
Himalaya Shipping	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for ZIM Integrated Shipping Services and Himalaya Shipping, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM Integrated Shipping Services	4	0	1	0	1.40
Himalaya Shipping	1	0	0	0	1.00

ZIM Integrated Shipping Services currently has a consensus price target of $14.84, suggesting a potential downside of 38.78%. Given ZIM Integrated Shipping Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe ZIM Integrated Shipping Services is more favorable than Himalaya Shipping.

Dividends

ZIM Integrated Shipping Services pays an annual dividend of $0.92 per share and has a dividend yield of 3.8%. Himalaya Shipping pays an annual dividend of $0.60 per share and has a dividend yield of 7.0%. ZIM Integrated Shipping Services pays out -4.3% of its earnings in the form of a dividend.

Volatility and Risk

ZIM Integrated Shipping Services has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500.

Summary

ZIM Integrated Shipping Services beats Himalaya Shipping on 8 of the 14 factors compared between the two stocks.

About ZIM Integrated Shipping Services

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of March 1, 2024, it operated a fleet of 150 vessels, which included 134 container vessels and 16 vehicle transport vessels; and as of December 31, 2023, it operated a network of 67 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.

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.