Head-To-Head Review: ZIM Integrated Shipping Services (NYSE:ZIM) versus International Seaways (NYSE:INSW)

International Seaways (NYSE:INSW) and ZIM Integrated Shipping Services (NYSE:ZIM) are both mid-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

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 raised its dividend for 1 consecutive years. International Seaways is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

International Seaways has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, ZIM Integrated Shipping Services has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

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 insiders. Comparatively, 1.3% of ZIM Integrated Shipping Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for International Seaways and ZIM Integrated Shipping Services, as provided by MarketBeat.

	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 currently has a consensus price target of $83.50, indicating a potential upside of 2.16%. ZIM Integrated Shipping Services has a consensus price target of $17.83, indicating a potential downside of 30.29%. Given International Seaways’ stronger consensus rating and higher probable upside, research analysts clearly believe International Seaways is more favorable than ZIM Integrated Shipping Services.

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%

Valuation & Earnings

This table compares International Seaways and ZIM Integrated Shipping Services”s revenue, earnings per share (EPS) 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

ZIM Integrated Shipping Services has higher revenue and earnings than International Seaways. International Seaways is trading at a lower price-to-earnings ratio than ZIM Integrated Shipping Services, indicating that it is currently the more affordable of the two stocks.

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.