Himalaya Shipping (NYSE:HSHP) vs. Performance Shipping (NASDAQ:PSHG) Head-To-Head Survey

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Performance Shipping and Himalaya Shipping, as reported by MarketBeat.

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

Performance Shipping presently has a consensus price target of $6.50, indicating a potential upside of 291.57%. Given Performance Shipping’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Performance Shipping is more favorable than Himalaya Shipping.

Dividends

Performance Shipping pays an annual dividend of $0.10 per share and has a dividend yield of 6.0%. Himalaya Shipping pays an annual dividend of $0.19 per share and has a dividend yield of 3.5%. Performance Shipping pays out 8.9% of its earnings in the form of a dividend. Himalaya Shipping pays out 39.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Performance Shipping is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

19.9% of Performance Shipping shares are owned by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are owned by institutional investors. 0.4% of Performance Shipping shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Performance Shipping has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Performance Shipping	49.49%	16.99%	13.89%
Himalaya Shipping	17.03%	13.36%	2.49%

Earnings & Valuation

This table compares Performance Shipping and Himalaya Shipping”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Performance Shipping	$89.61 million	0.23	$69.41 million	$1.12	1.48
Himalaya Shipping	$123.58 million	1.75	$1.51 million	$0.48	11.28

Performance Shipping has higher earnings, but lower revenue than Himalaya Shipping. Performance Shipping is trading at a lower price-to-earnings ratio than Himalaya Shipping, indicating that it is currently the more affordable of the two stocks.

Summary

Performance Shipping beats Himalaya Shipping on 11 of the 16 factors compared between the two stocks.

About Performance Shipping

Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, 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.