Flex LNG (NYSE:FLNG – Get Free Report) and Performance Shipping (NASDAQ:PSHG – Get Free Report) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
Flex LNG has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Performance Shipping has a beta of -0.33, suggesting that its stock price is 133% less volatile than the S&P 500.
Insider & Institutional Ownership
19.9% of Performance Shipping shares are owned by institutional investors. 0.3% of Flex LNG shares are owned by company insiders. Comparatively, 0.4% of Performance Shipping shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
| 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 clearly believe Flex LNG is more favorable than Performance Shipping.
Earnings and Valuation
This table compares Flex LNG and Performance Shipping”s revenue, earnings per share 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.
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% |
Summary
Flex LNG beats Performance Shipping on 7 of the 12 factors compared between the two stocks.
About Flex LNG
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
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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