Financial Analysis: Tsakos Energy Navigation (NYSE:TEN) vs. Himalaya Shipping (NYSE:HSHP)

Tsakos Energy Navigation (NYSE:TEN) and Himalaya Shipping (NYSE:HSHP) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Tsakos Energy Navigation and Himalaya Shipping”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tsakos Energy Navigation	$798.69 million	1.64	$160.90 million	$6.14	7.09
Himalaya Shipping	$167.30 million	5.06	$17.70 million	$1.13	16.07

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

Dividends

Tsakos Energy Navigation pays an annual dividend of $2.00 per share and has a dividend yield of 4.6%. Himalaya Shipping pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Tsakos Energy Navigation pays out 32.6% of its earnings in the form of a dividend. Himalaya Shipping pays out 4.4% 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tsakos Energy Navigation and Himalaya Shipping, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tsakos Energy Navigation	0	2	1	0	2.33
Himalaya Shipping	0	0	2	0	3.00

Tsakos Energy Navigation currently has a consensus price target of $29.50, suggesting a potential downside of 32.23%. Given Tsakos Energy Navigation’s higher probable upside, analysts clearly believe Tsakos Energy Navigation is more favorable than Himalaya Shipping.

Profitability

This table compares Tsakos Energy Navigation and Himalaya Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tsakos Energy Navigation	24.81%	23.26%	10.93%
Himalaya Shipping	31.44%	32.83%	6.13%

Insider and Institutional Ownership

19.2% of Tsakos Energy Navigation shares are owned by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are owned by institutional investors. 1.0% of Tsakos Energy Navigation shares are owned by insiders. 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.

Volatility & Risk

Tsakos Energy Navigation has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Summary

Himalaya Shipping beats Tsakos Energy Navigation on 9 of the 16 factors compared between the two stocks.

About Tsakos Energy Navigation

Tsakos Energy Navigation Ltd. engages in the provision of seaborne crude oil and petroleum product transportation services. Its activities include the operation of crude tankers, product tankers, and liquefied natural gas carriers. The company was founded by Nikolas P. Tsakos and Michael Gordon Jolliffee in July 1993 and is headquartered in Athens, Greece.

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.