ZIM Integrated Shipping Services (NYSE:ZIM) versus BW LPG (NYSE:BWLP) Head-To-Head Survey

ZIM Integrated Shipping Services (NYSE:ZIM) and BW LPG (NYSE:BWLP) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk & Volatility

ZIM Integrated Shipping Services has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, BW LPG has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Valuation & Earnings

This table compares ZIM Integrated Shipping Services and BW LPG”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM Integrated Shipping Services	$6.90 billion	0.45	$479.20 million	$3.98	6.48
BW LPG	$3.58 billion	0.86	$242.31 million	$1.60	12.73

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

Analyst Recommendations

This is a breakdown of recent recommendations for ZIM Integrated Shipping Services and BW LPG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM Integrated Shipping Services	2	5	0	1	2.00
BW LPG	1	1	2	0	2.25

ZIM Integrated Shipping Services currently has a consensus target price of $18.14, suggesting a potential downside of 29.62%. Given ZIM Integrated Shipping Services’ higher possible upside, equities analysts clearly believe ZIM Integrated Shipping Services is more favorable than BW LPG.

Profitability

This table compares ZIM Integrated Shipping Services and BW LPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM Integrated Shipping Services	6.94%	9.33%	3.34%
BW LPG	6.76%	12.61%	7.33%

Insider and Institutional Ownership

21.4% of ZIM Integrated Shipping Services shares are owned by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

ZIM Integrated Shipping Services pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. BW LPG pays an annual dividend of $2.28 per share and has a dividend yield of 11.2%. ZIM Integrated Shipping Services pays out 1.5% of its earnings in the form of a dividend. BW LPG pays out 142.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ZIM Integrated Shipping Services has raised its dividend for 1 consecutive years.

Summary

ZIM Integrated Shipping Services beats BW LPG on 10 of the 18 factors compared between the two stocks.

About ZIM Integrated Shipping Services

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of March 1, 2024, it operated a fleet of 150 vessels, which included 134 container vessels and 16 vehicle transport vessels; and as of December 31, 2023, it operated a network of 67 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.

About BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.