Himalaya Shipping (NYSE:HSHP – Get Free Report) and SFL (NYSE:SFL – Get Free Report) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
Risk and Volatility
Himalaya Shipping has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, SFL has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Profitability
This table compares Himalaya Shipping and SFL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Himalaya Shipping | 21.93% | 15.72% | 3.14% |
| SFL | 16.03% | 14.61% | 4.03% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Himalaya Shipping | $112.30 million | 2.59 | $1.51 million | N/A | N/A |
| SFL | $822.26 million | 1.75 | $83.94 million | $1.11 | 9.36 |
SFL has higher revenue and earnings than Himalaya Shipping.
Institutional & Insider Ownership
22.3% of Himalaya Shipping shares are owned by institutional investors. Comparatively, 28.6% of SFL shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.7%. SFL pays an annual dividend of $1.08 per share and has a dividend yield of 10.4%. SFL pays out 97.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
This is a breakdown of current ratings and price targets for Himalaya Shipping and SFL, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
| SFL | 0 | 0 | 2 | 0 | 3.00 |
SFL has a consensus target price of $16.00, indicating a potential upside of 53.99%. Given SFL’s stronger consensus rating and higher probable upside, analysts clearly believe SFL is more favorable than Himalaya Shipping.
Summary
SFL beats Himalaya Shipping on 8 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 SFL
SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sectors of the maritime, and shipping and offshore industries, including oil transportation, dry bulk shipments, chemical transportation, oil products transportation, container transportation, car transportation, and drilling rigs. As of December 31, 2023, the company owned seven crude oil carriers, six oil product tankers, 15 dry bulk carriers, 32 container vessels, one jack-up drilling rig, one ultra-deepwater drilling rig, and five car carriers. It primarily operates in Bermuda, Canada, Cyprus, Liberia, Namibia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was founded in 2003 and is based in Hamilton, Bermuda.
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