Head to Head Comparison: Flex LNG (NYSE:FLNG) versus Performance Shipping (NASDAQ:PSHG)

Flex LNG (NYSE:FLNG) and Performance Shipping (NASDAQ:PSHG) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Flex LNG and Performance Shipping, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex LNG	0	2	0	0	2.00
Performance Shipping	0	1	0	0	2.00

Flex LNG currently has a consensus target price of $23.00, suggesting a potential downside of 23.89%. Given Flex LNG’s higher possible upside, analysts plainly believe Flex LNG is more favorable than Performance Shipping.

Risk and Volatility

Flex LNG has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Performance Shipping has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500.

Profitability

This table compares Flex LNG and Performance Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex LNG	21.52%	13.46%	3.83%
Performance Shipping	59.37%	15.90%	10.88%

Insider and Institutional Ownership

19.9% of Performance Shipping shares are held by institutional investors. 0.3% of Flex LNG shares are held by company insiders. Comparatively, 0.4% of Performance Shipping shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Flex LNG and Performance Shipping”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex LNG	$347.64 million	4.70	$74.82 million	$1.39	21.74
Performance Shipping	$84.17 million	0.27	$49.97 million	$1.28	1.43

Flex LNG has higher revenue and earnings than Performance Shipping. Performance Shipping is trading at a lower price-to-earnings ratio than Flex LNG, indicating that it is currently the more affordable of the two stocks.

Summary

Flex LNG beats Performance Shipping on 7 of the 12 factors compared between the two stocks.

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.

About Performance Shipping

Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, Greece.