Diana Shipping (NYSE:DSX – Get Free Report) and Flex LNG (NYSE:FLNG – Get Free Report) are both small-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Profitability
This table compares Diana Shipping and Flex LNG’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diana Shipping | 11.18% | 4.93% | 2.11% |
| Flex LNG | 28.06% | 14.04% | 4.09% |
Valuation and Earnings
This table compares Diana Shipping and Flex LNG”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diana Shipping | $228.21 million | 1.00 | $12.75 million | $0.11 | 17.86 |
| Flex LNG | $356.35 million | 3.91 | $117.68 million | $1.83 | 14.13 |
Flex LNG has higher revenue and earnings than Diana Shipping. Flex LNG is trading at a lower price-to-earnings ratio than Diana Shipping, indicating that it is currently the more affordable of the two stocks.
Dividends
Diana Shipping pays an annual dividend of $0.04 per share and has a dividend yield of 2.0%. Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 11.6%. Diana Shipping pays out 36.4% of its earnings in the form of a dividend. Flex LNG pays out 163.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Diana Shipping has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Diana Shipping and Flex LNG, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diana Shipping | 1 | 0 | 0 | 0 | 1.00 |
| Flex LNG | 0 | 3 | 0 | 0 | 2.00 |
Flex LNG has a consensus target price of $23.00, indicating a potential downside of 11.05%. Given Flex LNG’s stronger consensus rating and higher probable upside, analysts clearly believe Flex LNG is more favorable than Diana Shipping.
Institutional & Insider Ownership
48.7% of Diana Shipping shares are owned by institutional investors. 0.3% of Flex LNG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Flex LNG beats Diana Shipping on 11 of the 15 factors compared between the two stocks.
About Diana Shipping
Diana Shipping Inc. provides shipping transportation services. The company transports a range of dry bulk cargoes, including commodities, such as iron ore, coal, grain, and other materials in shipping routes worldwide. As of March 1, 2024, it operated a fleet of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 9 Ultramax, and 6 Panamax. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was incorporated in 1999 and is based in Athens, Greece.
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.
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