Himalaya Shipping (NYSE:HSHP – Get Free Report) and Genco Shipping & Trading (NYSE:GNK – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Himalaya Shipping and Genco Shipping & Trading, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himalaya Shipping | 0 | 0 | 2 | 0 | 3.00 |
| Genco Shipping & Trading | 1 | 2 | 3 | 0 | 2.33 |
Genco Shipping & Trading has a consensus price target of $29.00, suggesting a potential upside of 9.55%. Given Genco Shipping & Trading’s higher possible upside, analysts clearly believe Genco Shipping & Trading is more favorable than Himalaya Shipping.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Himalaya Shipping | $131.90 million | 6.34 | $17.70 million | $1.13 | 15.88 |
| Genco Shipping & Trading | $440.69 million | 2.62 | -$4.37 million | $0.91 | 29.09 |
Himalaya Shipping has higher earnings, but lower revenue than Genco Shipping & Trading. Himalaya Shipping is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 58.6% of Genco Shipping & Trading shares are owned by institutional investors. 2.4% of Genco Shipping & Trading shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Himalaya Shipping and Genco Shipping & Trading’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Himalaya Shipping | 31.44% | 32.83% | 6.13% |
| Genco Shipping & Trading | 9.15% | 6.46% | 4.83% |
Risk & Volatility
Himalaya Shipping has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Summary
Himalaya Shipping beats Genco Shipping & Trading on 8 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 Genco Shipping & Trading
Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels. The company was founded on September 27, 2004 and is headquartered in New York, NY.
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