TORM (NASDAQ:TRMD – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Volatility & Risk
TORM has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500.
Earnings & Valuation
This table compares TORM and Himalaya Shipping”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TORM | $1.52 billion | N/A | $648.27 million | $7.80 | 3.18 |
| Himalaya Shipping | $36.74 million | 7.75 | $1.51 million | N/A | N/A |
Dividends
TORM pays an annual dividend of $5.26 per share and has a dividend yield of 21.2%. Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. TORM pays out 67.4% of its earnings in the form of a dividend.
Analyst Ratings
This is a breakdown of current recommendations for TORM and Himalaya Shipping, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TORM | 0 | 1 | 1 | 0 | 2.50 |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
TORM currently has a consensus target price of $48.00, suggesting a potential upside of 93.24%. Given TORM’s stronger consensus rating and higher possible upside, research analysts plainly believe TORM is more favorable than Himalaya Shipping.
Institutional & Insider Ownership
73.9% of TORM shares are owned by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are owned by institutional investors. 0.4% of TORM 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.
Profitability
This table compares TORM and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TORM | 43.81% | 36.06% | 20.93% |
| Himalaya Shipping | N/A | N/A | N/A |
Summary
TORM beats Himalaya Shipping on 11 of the 13 factors compared between the two stocks.
About TORM
TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.
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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