Himalaya Shipping (NYSE:HSHP) vs. BW LPG (NYSE:BWLP) Head-To-Head Review

BW LPG (NYSE:BWLP) and Himalaya Shipping (NYSE:HSHP) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares BW LPG and Himalaya Shipping”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BW LPG	$3.56 billion	0.80	$354.30 million	$1.13	16.61
Himalaya Shipping	$131.90 million	4.40	$17.70 million	$0.38	38.26

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

Dividends

BW LPG pays an annual dividend of $1.60 per share and has a dividend yield of 8.5%. Himalaya Shipping pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. BW LPG pays out 141.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Himalaya Shipping pays out 13.2% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BW LPG	4.57%	8.78%	5.04%
Himalaya Shipping	13.44%	11.02%	2.04%

Institutional & Insider Ownership

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for BW LPG and Himalaya Shipping, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BW LPG	0	1	1	0	2.50
Himalaya Shipping	0	1	0	0	2.00

Summary

BW LPG beats Himalaya Shipping on 7 of the 13 factors compared between the two stocks.

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.

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.