Analyzing Hafnia (NYSE:HAFN) and Diana Shipping (NYSE:DSX)

Diana Shipping (NYSE:DSX) and Hafnia (NYSE:HAFN) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Diana Shipping and Hafnia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diana Shipping	11.18%	4.93%	2.11%
Hafnia	29.50%	13.50%	8.46%

Institutional & Insider Ownership

48.7% of Diana Shipping shares are held 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

Diana Shipping pays an annual dividend of $0.04 per share and has a dividend yield of 2.3%. Hafnia pays an annual dividend of $0.58 per share and has a dividend yield of 10.9%. Diana Shipping pays out 36.4% of its earnings in the form of a dividend. Hafnia pays out 95.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Diana Shipping and Hafnia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diana Shipping	$228.21 million	0.87	$12.75 million	$0.11	15.59
Hafnia	$2.22 billion	1.21	$774.03 million	$0.61	8.71

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Diana Shipping and Hafnia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diana Shipping	1	0	0	0	1.00
Hafnia	0	1	0	1	3.00

Risk and Volatility

Diana Shipping has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Hafnia has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Summary

Hafnia beats Diana Shipping on 11 of the 14 factors compared between the two stocks.

About Diana Shipping

Diana Shipping Inc. provides shipping transportation services. The company transports a range of dry bulk cargoes, including commodities, such as iron ore, coal, grain, and other materials in shipping routes worldwide. As of March 1, 2024, it operated a fleet of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 9 Ultramax, and 6 Panamax. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was incorporated in 1999 and is based in Athens, Greece.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.