Toro (NASDAQ:TORO – Get Free Report) and Himalaya Shipping (NYSE:HSHP – Get Free Report) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.
Volatility & Risk
Toro has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Himalaya Shipping has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500.
Insider & Institutional Ownership
1.7% of Toro 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Toro | $80.63 million | 0.56 | $140.64 million | $1.06 | 2.23 |
| Himalaya Shipping | $123.58 million | 1.76 | $1.51 million | $0.48 | 11.34 |
Toro has higher earnings, but lower revenue than Himalaya Shipping. Toro is trading at a lower price-to-earnings ratio than Himalaya Shipping, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Toro and Himalaya Shipping, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Toro | 0 | 0 | 0 | 0 | 0.00 |
| Himalaya Shipping | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Toro and Himalaya Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Toro | 176.49% | 17.16% | 10.30% |
| Himalaya Shipping | 17.03% | 13.36% | 2.49% |
Summary
Himalaya Shipping beats Toro on 6 of the 11 factors compared between the two stocks.
About Toro
Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.
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.
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