Reviewing Performance Shipping (NASDAQ:PSHG) and Flex LNG (NYSE:FLNG)

Flex LNG (NYSE:FLNGGet Free Report) and Performance Shipping (NASDAQ:PSHGGet Free Report) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Institutional & Insider Ownership

19.9% of Performance Shipping shares are held by institutional investors. 0.3% of Flex LNG shares are held by company insiders. Comparatively, 0.4% of Performance Shipping shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Flex LNG and Performance Shipping”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flex LNG $347.64 million 4.72 $74.82 million $1.39 21.90
Performance Shipping $84.17 million 0.26 $49.97 million $1.28 1.39

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

Risk & Volatility

Flex LNG has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, Performance Shipping has a beta of -0.33, meaning that its stock price is 133% less volatile than the S&P 500.

Profitability

This table compares Flex LNG and Performance Shipping’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flex LNG 21.52% 13.46% 3.83%
Performance Shipping 59.37% 15.90% 10.88%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Flex LNG and Performance Shipping, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flex LNG 0 2 0 0 2.00
Performance Shipping 0 1 0 0 2.00

Flex LNG currently has a consensus target price of $23.00, suggesting a potential downside of 24.43%. Given Flex LNG’s higher possible upside, analysts plainly believe Flex LNG is more favorable than Performance Shipping.

Summary

Flex LNG beats Performance Shipping on 7 of the 12 factors compared between the two stocks.

About Flex LNG

(Get Free Report)

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.

About Performance Shipping

(Get Free Report)

Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, Greece.

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