Critical Survey: Himalaya Shipping (NYSE:HSHP) & Tsakos Energy Navigation (NYSE:TEN)

Tsakos Energy Navigation (NYSE:TEN) and Himalaya Shipping (NYSE:HSHP) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Tsakos Energy Navigation and Himalaya Shipping, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tsakos Energy Navigation	0	2	1	0	2.33
Himalaya Shipping	0	0	2	0	3.00

Tsakos Energy Navigation presently has a consensus price target of $29.50, suggesting a potential downside of 43.33%. Given Tsakos Energy Navigation’s higher probable upside, analysts plainly believe Tsakos Energy Navigation is more favorable than Himalaya Shipping.

Risk & Volatility

Tsakos Energy Navigation has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tsakos Energy Navigation and Himalaya Shipping”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tsakos Energy Navigation	$798.69 million	1.96	$160.90 million	$9.87	5.27
Himalaya Shipping	$131.90 million	6.54	$17.70 million	$1.13	16.37

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

Insider & Institutional Ownership

19.2% of Tsakos Energy Navigation shares are held by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are held by institutional investors. 1.0% of Tsakos Energy Navigation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Tsakos Energy Navigation and Himalaya Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tsakos Energy Navigation	33.81%	46.44%	21.75%
Himalaya Shipping	31.44%	32.83%	6.13%

Summary

Tsakos Energy Navigation beats Himalaya Shipping on 8 of the 14 factors compared between the two stocks.

About Tsakos Energy Navigation

Tsakos Energy Navigation Ltd. engages in the provision of seaborne crude oil and petroleum product transportation services. Its activities include the operation of crude tankers, product tankers, and liquefied natural gas carriers. The company was founded by Nikolas P. Tsakos and Michael Gordon Jolliffee in July 1993 and is headquartered in Athens, 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.