TORM (NASDAQ:TRMD – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings for TORM and Himalaya Shipping, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TORM | 0 | 1 | 1 | 0 | 2.50 |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
TORM currently has a consensus target price of $48.00, suggesting a potential upside of 93.63%. Given TORM’s stronger consensus rating and higher probable upside, research analysts clearly believe TORM is more favorable than Himalaya Shipping.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TORM | $1.63 billion | 1.24 | $648.27 million | $7.80 | 3.18 |
| Himalaya Shipping | $83.35 million | 3.39 | $1.51 million | N/A | N/A |
TORM has higher revenue and earnings than Himalaya Shipping.
Dividends
TORM pays an annual dividend of $5.25 per share and has a dividend yield of 21.2%. Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. TORM pays out 67.3% of its earnings in the form of a dividend.
Institutional & Insider Ownership
73.9% of TORM shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 0.4% of TORM shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares TORM and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TORM | 43.81% | 36.06% | 20.93% |
| Himalaya Shipping | N/A | N/A | N/A |
Volatility and Risk
TORM has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500.
Summary
TORM beats Himalaya Shipping on 11 of the 14 factors compared between the two stocks.
About TORM
TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.
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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