Head to Head Analysis: Himalaya Shipping (NYSE:HSHP) versus Navigator (NYSE:NVGS)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himalaya Shipping	$112.30 million	1.80	$1.51 million	N/A	N/A
Navigator	$564.28 million	2.08	$82.25 million	$1.13	14.20

Navigator has higher revenue and earnings than Himalaya Shipping.

Insider and Institutional Ownership

22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 19.0% of Navigator shares are owned by institutional investors. 0.4% of Navigator shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Himalaya Shipping and Navigator, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	1	0	0	0	1.00
Navigator	0	0	5	0	3.00

Navigator has a consensus price target of $21.60, indicating a potential upside of 34.58%. Given Navigator’s stronger consensus rating and higher probable upside, analysts plainly believe Navigator is more favorable than Himalaya Shipping.

Volatility & Risk

Himalaya Shipping has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Navigator has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Dividends

Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 3.9%. Navigator pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Navigator pays out 17.7% of its earnings in the form of a dividend.

Profitability

This table compares Himalaya Shipping and Navigator’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%
Navigator	14.48%	7.40%	4.23%

Summary

Navigator beats Himalaya Shipping on 8 of the 14 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 Navigator

Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.