Critical Comparison: Himalaya Shipping (NYSE:HSHP) versus Euroseas (NASDAQ:ESEA)

Himalaya Shipping (NYSE:HSHP) and Euroseas (NASDAQ:ESEA) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 6.3% of Euroseas shares are owned by institutional investors. 55.9% of Euroseas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Himalaya Shipping and Euroseas”s 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	62.21
Euroseas	$212.90 million	2.06	$112.78 million	$17.02	3.68

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

Profitability

This table compares Himalaya Shipping and Euroseas’ 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%
Euroseas	53.75%	28.56%	17.10%

Risk & Volatility

Himalaya Shipping has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Himalaya Shipping and Euroseas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	0	0	0	0	0.00
Euroseas	0	0	1	0	3.00

Euroseas has a consensus target price of $62.00, indicating a potential downside of 1.02%. Given Euroseas’ stronger consensus rating and higher probable upside, analysts plainly believe Euroseas is more favorable than Himalaya Shipping.

Summary

Euroseas beats Himalaya Shipping on 10 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 Euroseas

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of March 31, 2024, it had a fleet of 20 containerships with a cargo carrying capacity of approximately 777,749 dwt. The company was incorporated in 2005 and is based in Marousi, Greece.