Himalaya Shipping (NYSE:HSHP – Get Free Report) and Star Bulk Carriers (NASDAQ:SBLK – Get Free Report) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Risk and Volatility
Himalaya Shipping has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Star Bulk Carriers has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
Insider & Institutional Ownership
22.3% of Himalaya Shipping shares are held by institutional investors. Comparatively, 33.9% of Star Bulk Carriers shares are held by institutional investors. 0.9% of Star Bulk Carriers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Himalaya Shipping | 20.28% | 18.28% | 3.37% |
| Star Bulk Carriers | 13.01% | 6.81% | 4.36% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Himalaya Shipping and Star Bulk Carriers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himalaya Shipping | 0 | 1 | 0 | 0 | 2.00 |
| Star Bulk Carriers | 0 | 1 | 2 | 1 | 3.00 |
Star Bulk Carriers has a consensus price target of $31.50, indicating a potential upside of 18.55%. Given Star Bulk Carriers’ stronger consensus rating and higher possible upside, analysts plainly believe Star Bulk Carriers is more favorable than Himalaya Shipping.
Valuation and Earnings
This table compares Himalaya Shipping and Star Bulk Carriers”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Himalaya Shipping | $131.90 million | 5.22 | $17.70 million | $0.63 | 23.43 |
| Star Bulk Carriers | $1.04 billion | 2.89 | $84.17 million | $1.25 | 21.26 |
Star Bulk Carriers has higher revenue and earnings than Himalaya Shipping. Star Bulk Carriers 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
Star Bulk Carriers beats Himalaya Shipping on 10 of the 15 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 Star Bulk Carriers
Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of bulk commodities, including iron ores, minerals and grains, bauxite, fertilizers, and steel products. As of December 31, 2023, the company owned a fleet of 116 dry bulk vessels with combined carrying capacity of 13.1 million deadweight tonnage (dwt) consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax, and Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt. Star Bulk Carriers Corp. was incorporated in 2006 and is based in Marousi, Greece.
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