Danaos (NYSE:DAC – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.
Dividends
Danaos pays an annual dividend of $3.20 per share and has a dividend yield of 3.7%. Himalaya Shipping pays an annual dividend of $0.60 per share and has a dividend yield of 7.6%. Danaos pays out 10.9% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Danaos and Himalaya Shipping”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Danaos | $973.58 million | 1.73 | $576.30 million | $29.37 | 2.96 |
| Himalaya Shipping | $36.74 million | 8.62 | $1.51 million | N/A | N/A |
Risk and Volatility
Danaos has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Danaos and Himalaya Shipping, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Danaos | 0 | 0 | 1 | 0 | 3.00 |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
Danaos currently has a consensus target price of $105.00, suggesting a potential upside of 20.75%. Given Danaos’ stronger consensus rating and higher probable upside, equities analysts clearly believe Danaos is more favorable than Himalaya Shipping.
Profitability
This table compares Danaos and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Danaos | 58.15% | 17.88% | 14.63% |
| Himalaya Shipping | N/A | N/A | N/A |
Insider & Institutional Ownership
19.0% of Danaos shares are owned by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are owned by institutional investors. 41.0% of Danaos shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Danaos beats Himalaya Shipping on 9 of the 14 factors compared between the two stocks.
About Danaos
Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, 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.
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