Comparing Performance Shipping (NASDAQ:PSHG) & Flex LNG (NYSE:FLNG)

Performance Shipping (NASDAQ:PSHG) and Flex LNG (NYSE:FLNG) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Performance Shipping	$84.17 million	0.29	$49.97 million	$1.28	1.55
Flex LNG	$347.64 million	4.70	$74.82 million	$1.39	21.73

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Performance Shipping	59.37%	15.90%	10.88%
Flex LNG	21.52%	13.46%	3.83%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Performance Shipping	0	1	0	0	2.00
Flex LNG	0	2	0	0	2.00

Flex LNG has a consensus target price of $23.00, indicating a potential downside of 23.84%. Given Flex LNG’s higher probable upside, analysts plainly believe Flex LNG is more favorable than Performance Shipping.

Insider and Institutional Ownership

19.9% of Performance Shipping shares are held by institutional investors. 0.4% of Performance Shipping shares are held by company insiders. Comparatively, 0.3% of Flex LNG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Performance Shipping has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Summary

Flex LNG beats Performance Shipping on 7 of the 12 factors compared between the two stocks.

About Performance Shipping

Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, Greece.

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.