Ardmore Shipping (NYSE:ASC – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.
Profitability
This table compares Ardmore Shipping and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ardmore Shipping | 36.22% | 23.63% | 19.42% |
| Himalaya Shipping | 21.93% | 15.72% | 3.14% |
Earnings and Valuation
This table compares Ardmore Shipping and Himalaya Shipping”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ardmore Shipping | $422.62 million | 1.18 | $116.81 million | $3.57 | 3.34 |
| Himalaya Shipping | $36.74 million | 7.70 | $1.51 million | N/A | N/A |
Risk and Volatility
Ardmore Shipping has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Ardmore Shipping and Himalaya Shipping, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ardmore Shipping | 0 | 2 | 2 | 0 | 2.50 |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
Ardmore Shipping presently has a consensus target price of $22.33, indicating a potential upside of 87.05%. Given Ardmore Shipping’s stronger consensus rating and higher probable upside, research analysts plainly believe Ardmore Shipping is more favorable than Himalaya Shipping.
Dividends
Ardmore Shipping pays an annual dividend of $0.72 per share and has a dividend yield of 6.0%. Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Ardmore Shipping pays out 20.2% of its earnings in the form of a dividend.
Insider and Institutional Ownership
62.2% of Ardmore Shipping shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Ardmore Shipping beats Himalaya Shipping on 10 of the 13 factors compared between the two stocks.
About Ardmore Shipping
Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide. The company's fleet consists of 22 owned vessels including 21 Eco-design and 1 Eco-mod vessel, and four chartered-in vessels. It serves oil majors, oil companies, oil and chemical traders, chemical companies, and pooling service providers. Ardmore Shipping Corporation was founded in 2010 and is headquartered in Pembroke, Bermuda.
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.
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