Analyzing ZIM Integrated Shipping Services (NYSE:ZIM) and Genco Shipping & Trading (NYSE:GNK)

ZIM Integrated Shipping Services (NYSE:ZIM) and Genco Shipping & Trading (NYSE:GNK) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares ZIM Integrated Shipping Services and Genco Shipping & Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM Integrated Shipping Services	2.15%	1.11%	0.41%
Genco Shipping & Trading	15.48%	10.89%	7.98%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ZIM Integrated Shipping Services and Genco Shipping & Trading, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM Integrated Shipping Services	1	5	0	2	2.38
Genco Shipping & Trading	1	2	2	0	2.20

ZIM Integrated Shipping Services presently has a consensus target price of $22.42, indicating a potential downside of 21.27%. Genco Shipping & Trading has a consensus target price of $29.00, indicating a potential upside of 11.82%. Given Genco Shipping & Trading’s higher probable upside, analysts plainly believe Genco Shipping & Trading is more favorable than ZIM Integrated Shipping Services.

Volatility and Risk

ZIM Integrated Shipping Services has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Institutional and Insider Ownership

21.4% of ZIM Integrated Shipping Services shares are owned by institutional investors. Comparatively, 58.6% of Genco Shipping & Trading shares are owned by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are owned by company insiders. Comparatively, 2.1% of Genco Shipping & Trading shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares ZIM Integrated Shipping Services and Genco Shipping & Trading”s gross 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	0.50	$479.20 million	$1.15	24.76
Genco Shipping & Trading	$342.05 million	3.31	-$4.37 million	$1.78	14.57

ZIM Integrated Shipping Services has higher revenue and earnings than Genco Shipping & Trading. Genco Shipping & Trading 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.

Summary

Genco Shipping & Trading beats ZIM Integrated Shipping Services on 9 of the 15 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 Genco Shipping & Trading

Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels. The company was founded on September 27, 2004 and is headquartered in New York, NY.