Analyzing ZIM Integrated Shipping Services (NYSE:ZIM) & CMB.TECH (NYSE:CMBT)

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

Institutional and Insider Ownership

21.4% of ZIM Integrated Shipping Services shares are held by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

CMB.TECH has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, ZIM Integrated Shipping Services has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Dividends

CMB.TECH pays an annual dividend of $0.62 per share and has a dividend yield of 3.9%. ZIM Integrated Shipping Services pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. CMB.TECH pays out 36.7% 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CMB.TECH and ZIM Integrated Shipping Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CMB.TECH	0	1	0	2	3.33
ZIM Integrated Shipping Services	2	4	0	2	2.25

ZIM Integrated Shipping Services has a consensus price target of $19.33, suggesting a potential downside of 27.28%. Given ZIM Integrated Shipping Services’ higher probable upside, analysts plainly believe ZIM Integrated Shipping Services is more favorable than CMB.TECH.

Earnings and Valuation

This table compares CMB.TECH and ZIM Integrated Shipping Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CMB.TECH	$1.67 billion	1.91	$160.70 million	$1.69	9.44
ZIM Integrated Shipping Services	$6.29 billion	0.51	$479.20 million	$0.81	32.82

ZIM Integrated Shipping Services has higher revenue and earnings than CMB.TECH. CMB.TECH 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CMB.TECH	24.94%	18.25%	5.79%
ZIM Integrated Shipping Services	1.56%	-0.26%	-0.09%

Summary

ZIM Integrated Shipping Services beats CMB.TECH on 9 of the 16 factors compared between the two stocks.

About CMB.TECH

Euronav NV, together with its subsidiaries, engages in the transportation and storage of crude oil worldwide. The company offers floating, storage, and offloading (FSO) services. It also owns and operates a fleet of vessels. The company was incorporated in 2003 and is headquartered in Antwerp, Belgium. As of March 15, 2024, Euronav NV operates as subsidiary of CMB NV.

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.