Head to Head Survey: Ardmore Shipping (NYSE:ASC) vs. Himalaya Shipping (NYSE:HSHP)

Ardmore Shipping (NYSE:ASC) and Himalaya Shipping (NYSE:HSHP) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Insider & Institutional Ownership

62.2% of Ardmore Shipping shares are owned by institutional investors. Comparatively, 22.3% of Himalaya Shipping shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ardmore Shipping	36.22%	23.63%	19.42%
Himalaya Shipping	N/A	N/A	N/A

Dividends

Ardmore Shipping pays an annual dividend of $1.52 per share and has a dividend yield of 12.4%. Himalaya Shipping pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Ardmore Shipping pays out 42.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Ardmore Shipping 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
Ardmore Shipping	$395.98 million	1.29	$116.81 million	$3.57	3.43
Himalaya Shipping	$83.35 million	3.46	$1.51 million	N/A	N/A

Ardmore Shipping has higher revenue and earnings than Himalaya Shipping.

Analyst Ratings

This is a summary of recent ratings for Ardmore Shipping and Himalaya Shipping, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ardmore Shipping	0	2	2	0	2.50
Himalaya Shipping	1	0	0	0	1.00

Ardmore Shipping currently has a consensus target price of $22.33, indicating a potential upside of 82.31%. Given Ardmore Shipping’s stronger consensus rating and higher probable upside, analysts clearly believe Ardmore Shipping is more favorable than Himalaya Shipping.

Risk and Volatility

Ardmore Shipping has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500.

Summary

Ardmore Shipping beats Himalaya Shipping on 10 of the 13 factors compared between the two stocks.

About Ardmore Shipping

Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide. The company's fleet consists of 22 owned vessels including 21 Eco-design and 1 Eco-mod vessel, and four chartered-in vessels. It serves oil majors, oil companies, oil and chemical traders, chemical companies, and pooling service providers. Ardmore Shipping Corporation was founded in 2010 and is headquartered in Pembroke, Bermuda.

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.