Head to Head Analysis: Himalaya Shipping (NYSE:HSHP) and Scorpio Tankers (NYSE:STNG)

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

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%

Insider and 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 insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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.

Valuation & Earnings

This table compares Himalaya Shipping and Scorpio Tankers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	2.60	$1.51 million	N/A	N/A
Scorpio Tankers	$1.34 billion	2.02	$546.90 million	$13.95	3.85

Scorpio Tankers has higher revenue and earnings than Himalaya Shipping.

Analyst Ratings

This is a breakdown of current ratings and recommmendations 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

Scorpio Tankers has a consensus target price of $76.40, indicating a potential upside of 42.22%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, analysts plainly believe Scorpio Tankers is more favorable than Himalaya Shipping.

Risk and Volatility

Himalaya Shipping has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 0.18, meaning that its stock 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.