Scorpio Tankers (NYSE:STNG – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Profitability
This table compares Scorpio Tankers and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scorpio Tankers | 52.40% | 22.56% | 15.35% |
| Himalaya Shipping | 21.93% | 15.72% | 3.14% |
Dividends
Scorpio Tankers pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.7%. Scorpio Tankers pays out 11.5% of its earnings in the form of a dividend.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scorpio Tankers | 0 | 3 | 3 | 0 | 2.50 |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
Scorpio Tankers presently has a consensus price target of $76.40, indicating a potential upside of 42.19%. Given Scorpio Tankers’ stronger consensus rating and higher probable upside, analysts clearly believe Scorpio Tankers is more favorable than Himalaya Shipping.
Valuation and Earnings
This table compares Scorpio Tankers and Himalaya Shipping”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scorpio Tankers | $1.38 billion | 1.97 | $546.90 million | $13.95 | 3.85 |
| Himalaya Shipping | $36.74 million | 7.91 | $1.51 million | N/A | N/A |
Scorpio Tankers has higher revenue and earnings than Himalaya Shipping.
Institutional & Insider Ownership
54.6% of Scorpio Tankers shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 7.3% of Scorpio Tankers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Scorpio Tankers has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500.
Summary
Scorpio Tankers beats Himalaya Shipping on 11 of the 14 factors compared between the two stocks.
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.
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.
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