ZIM Integrated Shipping Services (NYSE:ZIM) versus Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) Critical Analysis

Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY – Get Free Report) and ZIM Integrated Shipping Services (NYSE:ZIM – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Nippon Yusen Kabushiki Kaisha and ZIM Integrated Shipping Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nippon Yusen Kabushiki Kaisha 0 1 0 0 2.00
ZIM Integrated Shipping Services 1 5 0 2 2.38

ZIM Integrated Shipping Services has a consensus target price of $22.42, indicating a potential downside of 22.40%. Given ZIM Integrated Shipping Services’ stronger consensus rating and higher possible upside, analysts clearly believe ZIM Integrated Shipping Services is more favorable than Nippon Yusen Kabushiki Kaisha.

Profitability

This table compares Nippon Yusen Kabushiki Kaisha and ZIM Integrated Shipping Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nippon Yusen Kabushiki Kaisha 8.88% 5.53% 3.38%
ZIM Integrated Shipping Services 2.15% 1.11% 0.41%

Insider & Institutional Ownership

21.4% of ZIM Integrated Shipping Services shares are owned by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are owned by 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 & Earnings

This table compares Nippon Yusen Kabushiki Kaisha 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
Nippon Yusen Kabushiki Kaisha $16.10 billion 1.18 $1.40 billion $0.71 13.21
ZIM Integrated Shipping Services $6.90 billion 0.50 $479.20 million $1.15 25.12

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than ZIM Integrated Shipping Services. Nippon Yusen Kabushiki Kaisha 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.

Volatility & Risk

Nippon Yusen Kabushiki Kaisha has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, ZIM Integrated Shipping Services has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Summary

ZIM Integrated Shipping Services beats Nippon Yusen Kabushiki Kaisha on 8 of the 14 factors compared between the two stocks.

About Nippon Yusen Kabushiki Kaisha

(Get Free Report)

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.

About ZIM Integrated Shipping Services

(Get Free Report)

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.

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