Critical Survey: 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 better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

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

Dividends

ZIM Integrated Shipping Services pays an annual dividend of $0.92 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 6.9%. ZIM Integrated Shipping Services pays out -4.3% of its earnings in the form of a dividend.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM Integrated Shipping Services	4	1	0	0	1.20
Himalaya Shipping	1	0	0	0	1.00

ZIM Integrated Shipping Services currently has a consensus price target of $15.44, suggesting a potential downside of 33.99%. Given ZIM Integrated Shipping Services’ stronger consensus rating and higher probable upside, equities research analysts clearly believe ZIM Integrated Shipping Services is more favorable than Himalaya Shipping.

Institutional and Insider Ownership

21.4% of ZIM Integrated Shipping Services shares are owned by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are owned by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ZIM Integrated Shipping Services and Himalaya Shipping”s top-line 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	0.55	-$2.70 billion	($21.17)	-1.10
Himalaya Shipping	$83.35 million	4.15	$1.51 million	N/A	N/A

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

Risk and Volatility

ZIM Integrated Shipping Services has a beta of 1.83, meaning that its share price is 83% 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.

Summary

ZIM Integrated Shipping Services beats Himalaya Shipping on 7 of the 13 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.