Global Ship Lease (NYSE:GSL – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Profitability
This table compares Global Ship Lease and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Ship Lease | 54.33% | 22.35% | 13.99% |
| Himalaya Shipping | 13.44% | 11.02% | 2.04% |
Volatility and Risk
Global Ship Lease has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Ship Lease | $766.45 million | 1.94 | $416.45 million | $11.39 | 3.63 |
| Himalaya Shipping | $131.90 million | 5.47 | $17.70 million | $0.38 | 40.66 |
Global Ship Lease has higher revenue and earnings than Himalaya Shipping. Global Ship Lease is trading at a lower price-to-earnings ratio than Himalaya Shipping, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Global Ship Lease and Himalaya Shipping, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Ship Lease | 0 | 2 | 3 | 1 | 2.83 |
| Himalaya Shipping | 0 | 1 | 0 | 0 | 2.00 |
Global Ship Lease presently has a consensus target price of $40.33, suggesting a potential downside of 2.53%. Given Global Ship Lease’s stronger consensus rating and higher probable upside, analysts clearly believe Global Ship Lease is more favorable than Himalaya Shipping.
Institutional & Insider Ownership
50.1% of Global Ship Lease shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Global Ship Lease beats Himalaya Shipping on 11 of the 14 factors compared between the two stocks.
About Global Ship Lease
Global Ship Lease, Inc., together with its subsidiaries, engages in owning and chartering of containerships under fixed-rate charters to container shipping companies worldwide. As of March 11, 2024, it owned 68 mid-sized and smaller containerships, ranging from 2,207 to 11,040 twenty-foot equivalent unit (TEU), with an aggregate capacity of 375,406 TEU. The company was founded in 2007 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.
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