Himalaya Shipping (NYSE:HSHP) & Danaos (NYSE:DAC) Head-To-Head Survey

Danaos (NYSE:DAC) and Himalaya Shipping (NYSE:HSHP) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Dividends

Danaos pays an annual dividend of $3.20 per share and has a dividend yield of 3.9%. Himalaya Shipping pays an annual dividend of $0.60 per share and has a dividend yield of 8.1%. Danaos pays out 10.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Danaos and Himalaya Shipping”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaos	$988.29 million	1.62	$576.30 million	$29.46	2.80
Himalaya Shipping	$83.35 million	3.53	$1.51 million	N/A	N/A

Danaos has higher revenue and earnings than Himalaya Shipping.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Danaos and Himalaya Shipping, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaos	0	0	1	0	3.00
Himalaya Shipping	1	0	0	0	1.00

Danaos presently has a consensus target price of $105.00, suggesting a potential upside of 27.41%. Given Danaos’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Danaos is more favorable than Himalaya Shipping.

Institutional and Insider Ownership

19.0% of Danaos shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 41.0% of Danaos shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Danaos has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Danaos	58.15%	17.88%	14.63%
Himalaya Shipping	N/A	N/A	N/A

Summary

Danaos beats Himalaya Shipping on 9 of the 14 factors compared between the two stocks.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.

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.