Himalaya Shipping (NYSE:HSHP) vs. Flex LNG (NYSE:FLNG) Head to Head Review

Himalaya Shipping (NYSE:HSHP) and Flex LNG (NYSE:FLNG) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Himalaya Shipping	5.32%	4.03%	0.73%
Flex LNG	29.10%	14.83%	4.56%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himalaya Shipping	$123.58 million	N/A	$21.04 million	$0.14	52.54
Flex LNG	$356.35 million	3.90	$117.68 million	$1.91	13.51

Flex LNG has higher revenue and earnings than Himalaya Shipping. Flex LNG is trading at a lower price-to-earnings ratio than Himalaya Shipping, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

22.3% of Himalaya Shipping shares are held by institutional investors. 0.3% of Flex LNG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Himalaya Shipping and Flex LNG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	0	0	0	0	0.00
Flex LNG	0	2	0	0	2.00

Flex LNG has a consensus price target of $23.00, suggesting a potential downside of 10.89%. Given Flex LNG’s stronger consensus rating and higher probable upside, analysts plainly believe Flex LNG is more favorable than Himalaya Shipping.

Risk & Volatility

Himalaya Shipping has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Summary

Flex LNG beats Himalaya Shipping on 9 of the 12 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 Flex LNG

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.