Navios Maritime Partners (NYSE:NMM) & Himalaya Shipping (NYSE:HSHP) Critical Review

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

Analyst Recommendations

This is a summary of current ratings and target prices for Himalaya Shipping and Navios Maritime Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Shipping	0	1	0	0	2.00
Navios Maritime Partners	0	1	0	0	2.00

Dividends

Himalaya Shipping pays an annual dividend of $0.05 per share and has a dividend yield of 0.6%. Navios Maritime Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Himalaya Shipping pays out 35.7% of its earnings in the form of a dividend. Navios Maritime Partners pays out 2.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

22.3% of Himalaya Shipping shares are held by institutional investors. Comparatively, 62.7% of Navios Maritime Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Himalaya Shipping and Navios Maritime Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himalaya Shipping	$120.68 million	2.62	$21.04 million	$0.14	56.66
Navios Maritime Partners	$1.33 billion	0.97	$367.31 million	$10.03	4.33

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

Risk & Volatility

Himalaya Shipping has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Navios Maritime Partners has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Profitability

This table compares Himalaya Shipping and Navios Maritime Partners’ 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%
Navios Maritime Partners	23.31%	9.24%	5.04%

Summary

Navios Maritime Partners beats Himalaya Shipping on 8 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 Navios Maritime Partners

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of liquid and dry cargo commodities, including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer, and containers, as well as charters its vessels under short, medium, and longer-term charters. Navios Maritime Partners L.P. was founded in 2007 and is based in Monaco.