Reviewing Costamare (NYSE:CMRE) & Himalaya Shipping (NYSE:HSHP)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himalaya Shipping	$36.74 million	6.74	$1.51 million	N/A	N/A
Costamare	$1.51 billion	1.03	$385.75 million	$3.01	4.39

Costamare has higher revenue and earnings than Himalaya Shipping.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Himalaya Shipping	21.93%	15.72%	3.14%
Costamare	19.11%	14.28%	6.74%

Analyst Ratings

This is a summary of recent ratings for Himalaya Shipping and Costamare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	1	0	0	0	1.00
Costamare	0	2	0	0	2.00

Costamare has a consensus price target of $13.50, suggesting a potential upside of 2.27%. Given Costamare’s stronger consensus rating and higher possible upside, analysts clearly believe Costamare is more favorable than Himalaya Shipping.

Institutional and Insider Ownership

22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 58.1% of Costamare shares are owned by institutional investors. 23.2% of Costamare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 3.2%. Costamare pays an annual dividend of $0.46 per share and has a dividend yield of 3.5%. Costamare pays out 15.3% of its earnings in the form of a dividend.

Risk & Volatility

Himalaya Shipping has a beta of 2.63, indicating that its stock price is 163% more volatile than the S&P 500. Comparatively, Costamare has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Summary

Costamare beats Himalaya Shipping on 8 of the 13 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 Costamare

Costamare Inc. owns and operates containerships and dry bulk vessels that are chartered to liner companies providing transportation of cargoes worldwide. As of March 19, 2024, it had a fleet of fleet of 68 containerships and 37 dry bulk vessels. The company was founded in 1974 and is based in Monaco.