International Seaways (NYSE:INSW – Get Free Report) and ZIM Integrated Shipping Services (NYSE:ZIM – Get Free Report) are both mid-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Earnings and Valuation
This table compares International Seaways and ZIM Integrated Shipping Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Seaways | $843.30 million | 4.80 | $309.26 million | $10.98 | 7.44 |
| ZIM Integrated Shipping Services | $6.90 billion | 0.45 | $479.20 million | $0.81 | 31.58 |
Profitability
This table compares International Seaways and ZIM Integrated Shipping Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Seaways | 55.39% | 21.04% | 15.60% |
| ZIM Integrated Shipping Services | 1.56% | -0.26% | -0.09% |
Volatility & Risk
International Seaways has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, ZIM Integrated Shipping Services has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for International Seaways and ZIM Integrated Shipping Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Seaways | 0 | 1 | 5 | 1 | 3.00 |
| ZIM Integrated Shipping Services | 2 | 4 | 0 | 1 | 2.00 |
International Seaways presently has a consensus target price of $83.50, indicating a potential upside of 2.16%. ZIM Integrated Shipping Services has a consensus target price of $17.83, indicating a potential downside of 30.29%. Given International Seaways’ stronger consensus rating and higher possible upside, equities analysts clearly believe International Seaways is more favorable than ZIM Integrated Shipping Services.
Institutional and Insider Ownership
67.3% of International Seaways shares are held by institutional investors. Comparatively, 21.4% of ZIM Integrated Shipping Services shares are held by institutional investors. 1.7% of International Seaways shares are held by company insiders. Comparatively, 1.3% of ZIM Integrated Shipping Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
International Seaways pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. ZIM Integrated Shipping Services pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. International Seaways pays out 4.4% of its earnings in the form of a dividend. ZIM Integrated Shipping Services pays out 7.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ZIM Integrated Shipping Services has increased its dividend for 1 consecutive years. International Seaways is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
International Seaways beats ZIM Integrated Shipping Services on 12 of the 17 factors compared between the two stocks.
About International Seaways
International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments: Crude Tankers and Product Carriers. As of December 31, 2023, the company owned a fleet of 73 vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.
About ZIM Integrated Shipping Services
ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of March 1, 2024, it operated a fleet of 150 vessels, which included 134 container vessels and 16 vehicle transport vessels; and as of December 31, 2023, it operated a network of 67 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.
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