Comparison of SFL (NYSE:SFL) and ZIM (NYSE:ZIM) Integrated Shipping Services


SFL (NYSE:SFL – Get Rating) and ZIM Integrated Shipping Services (NYSE:ZIM – Get Rating) are both shipping companies, but which is the best investment? We’ll compare the two companies based on their risk strength, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Notes

This is a breakdown of recent ratings and target prices for SFL and ZIM integrated shipping services, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
SFL 0 1 1 0 2.50
ZIM Integrated Shipping Services 1 2 2 0 2.20

SFL currently has a consensus price target of $10.00, suggesting a potential decline of 11.82%. ZIM Integrated Shipping Services has a consensus price target of $79.01, suggesting a potential upside of 16.13%. Given the likely higher upside of ZIM Integrated Shipping Services, analysts clearly believe that ZIM Integrated Shipping Services is more favorable than SFL.

Dividends

SFL pays an annual dividend of $0.80 per share and has a dividend yield of 7.1%. ZIM Integrated Shipping Services pays an annual dividend of $68.00 per share and has a dividend yield of 100.0%. SFL distributes 56.7% of its earnings in the form of a dividend. ZIM Integrated Shipping Services pays 142.0% of its earnings as a dividend, suggesting that it may not have enough earnings to cover its dividend payment in the future. SFL has increased its dividend for 2 consecutive years.

Institutional and insider ownership

29.8% of SFL shares are held by institutional investors. By comparison, 47.3% of ZIM Integrated Shipping Services shares are held by institutional investors. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of SFL and ZIM Integrated Shipping Services.

Net margins Return on equity return on assets
SFL 32.31% 14.36% 3.98%
ZIM Integrated Shipping Services 45.36% 167.57% 64.72%

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of SFL and ZIM Integrated Shipping Services.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
SFL $513.40 million 3.06 $164.34 million $1.41 8.04
ZIM Integrated Shipping Services $10.73 billion 0.76 $4.64 billion $47.90 1.42

ZIM Integrated Shipping Services has higher revenues and profits than SFL. ZIM Integrated Shipping Services trades at a lower price-to-earnings ratio than SFL, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

SFL has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, ZIM Integrated Shipping Services has a beta of 2.42, suggesting that its stock price stock is 142% more volatile than the S&P 500.

Summary

ZIM Integrated Shipping Services beats SFL on 11 out of 16 factors compared between the two stocks.

About SFL (Get a rating)

SFL Corporation Ltd., a marine and offshore asset owning and charter company, is engaged in the ownership, operation and charter of vessels and offshore assets on medium to long charters term. The Company is also involved in the chartering, buying and selling of assets. In addition, it operates in various sectors of marine, maritime and offshore industries, including oil, chemical, petroleum product, container and car transportation, as well as dry bulk shipping and drilling rigs. As of December 31, 2021, the company owned six tankers, 15 bulk carriers, 35 container ships, two car carriers, one jack-up drilling rig, one ultra-deepwater drilling unit, two chemical tankers and four petroleum products. tankers. It mainly operates in Bermuda, Cyprus, Liberia, Norway, Singapore, United Kingdom and Marshall Islands. The company was previously known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was incorporated in 2003 and is based in Hamilton, Bermuda.

About ZIM Integrated Shipping Services (Get a rating)

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and abroad. 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 cold cargo tracking service. As of December 31, 2021, it operates a fleet of 118 vessels, including 110 container ships and 8 vehicle transport vessels, of which 4 vessels belong to it and 114 vessels are chartered; and network of 70 weekly lines. The company was incorporated in 1945 and is based in Haifa, Israel.



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