Analyzing ZIM Integrated Shipping Services (NYSE:ZIM) and International Seaways (NYSE:INSW)

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

Institutional and Insider Ownership

21.4% of ZIM Integrated Shipping Services shares are held by institutional investors. Comparatively, 67.3% of International Seaways shares are held by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are held by insiders. Comparatively, 1.7% of International Seaways shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

ZIM Integrated Shipping Services pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. International Seaways pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. ZIM Integrated Shipping Services pays out 7.4% of its earnings in the form of a dividend. International Seaways pays out 4.4% 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 increased its dividend for 1 consecutive years. International Seaways is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares ZIM Integrated Shipping Services and International Seaways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM Integrated Shipping Services	1.56%	-0.26%	-0.09%
International Seaways	55.39%	21.04%	15.60%

Earnings and Valuation

This table compares ZIM Integrated Shipping Services and International Seaways”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM Integrated Shipping Services	$6.90 billion	0.46	$479.20 million	$0.81	32.34
International Seaways	$985.38 million	4.12	$309.26 million	$10.98	7.48

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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ZIM Integrated Shipping Services and International Seaways, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM Integrated Shipping Services	2	4	0	1	2.00
International Seaways	0	1	5	1	3.00

ZIM Integrated Shipping Services currently has a consensus price target of $17.83, indicating a potential downside of 31.92%. International Seaways has a consensus price target of $83.50, indicating a potential upside of 1.73%. Given International Seaways’ stronger consensus rating and higher possible upside, analysts plainly believe International Seaways is more favorable than ZIM Integrated Shipping Services.

Volatility and Risk

ZIM Integrated Shipping Services has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, International Seaways has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500.

Summary

International Seaways beats ZIM Integrated Shipping Services on 12 of the 17 factors compared between the two stocks.

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.

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.