Scorpio Tankers (NYSE:STNG) versus Himalaya Shipping (NYSE:HSHP) Head-To-Head Comparison

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

Valuation and Earnings

This table compares Scorpio Tankers and Himalaya Shipping”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scorpio Tankers	$1.34 billion	2.10	$546.90 million	$13.95	3.99
Himalaya Shipping	$112.30 million	2.55	$1.51 million	N/A	N/A

Scorpio Tankers has higher revenue and earnings than Himalaya Shipping.

Institutional & Insider Ownership

54.6% of Scorpio Tankers shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 7.3% of Scorpio Tankers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Scorpio Tankers pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Scorpio Tankers pays out 11.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Scorpio Tankers and Himalaya Shipping, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	0	3	3	0	2.50
Himalaya Shipping	1	0	0	0	1.00

Scorpio Tankers presently has a consensus price target of $76.40, suggesting a potential upside of 37.14%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, research analysts plainly believe Scorpio Tankers is more favorable than Himalaya Shipping.

Risk & Volatility

Scorpio Tankers has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	52.40%	22.56%	15.35%
Himalaya Shipping	21.93%	15.72%	3.14%

Summary

Scorpio Tankers beats Himalaya Shipping on 11 of the 14 factors compared between the two stocks.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.

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.