PSHG vs STNG: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
STNG is the larger of the two ($3.90B market cap): the incumbent the market prices for continued execution (13.11x forward earnings, beta -0.25). PSHG is the smaller challenger ($21.63M), cheaper on forward earnings (1.61x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
PSHG vs STNG: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | PSHG | STNG | What it tells you |
|---|---|---|---|
| Market cap | $21.63M | $3.90B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 1.61 | 13.11 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 2.23 | 4.85 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | -0.15 | -0.25 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 13% of range | 78% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 0.06 | 1.15 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: PSHG is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how PSHG and STNG affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. PSHG and STNG share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined PSHG and STNG exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Performance Shipping Inc (PSHG) do?
Performance Shipping Inc is a Greece-based (Athens) shipowner that operates a fleet of crude and product tankers, historically Aframax and Suezmax vessels, and has been adding newbuild LR2 Aframax product tankers under sale-and-leaseback arrangements. It makes money by chartering these ships to oil traders, refiners, and commodity groups, either on the volatile spot market or on multi-year time charters (recent deals were struck around $31,000 per day). Like all tanker owners, its revenue and profits are driven mainly by charter rates, which rise and fall sharply with global oil demand, ton-mile trade patterns, fleet supply, and geopolitical disruptions to shipping routes. In 2026 the company has been renewing its fleet, selling older vessels and taking delivery of newbuilds.
What does Scorpio Tankers Inc (STNG) do?
Scorpio Tankers Inc is one of the world's largest owners and operators of product tankers, the ships that carry refined petroleum products such as gasoline, diesel, jet fuel, and naphtha (as opposed to crude oil). Its fleet spans LR2, MR, and Handymax vessels, and in 2026 numbered in the low 80s of ships as the company sold selected older tankers. The economics are straightforward but volatile: most vessels earn money in the spot and pool markets, where daily time-charter-equivalent (TCE) rates move with global refined-product demand, trade routes, refinery locations, and fleet supply. When those rates are high, a large fleet like Scorpio's generates enormous cash flow because much of a ship's cost is fixed; when rates fall, that same operating leverage cuts the other way.
PSHG vs STNG: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- PSHG drivers: Tanker charter rates and the shipping cycle; Fleet renewal and long-term charters.
- STNG drivers: Product-tanker spot rates drive everything; Deleveraging and a stronger balance sheet.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risks are cyclicality and dilution. For STNG, the dominant risk is shipping cyclicality: Scorpio's revenue and profits are tied to product-tanker spot rates, which can fall sharply if refined-product demand weakens, trade routes shorten, or a wave of newbuild vessels expands supply.
PSHG or STNG: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick PSHG if you believe its drivers more; STNG if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the PSHG and STNG guides.
PSHG vs STNG: the full fundamentals
PSHG. Figures are approximate and tied to the asOf date; verify live numbers before acting. For a micro-cap tanker owner like PSHG, standard valuation multiples are unreliable because earnings swing violently with charter rates and the share count has changed repeatedly through splits and dilutive raises. What matters most is the current share count and dilution overhang (warrants and preferred), the fixed obligations from sale-and-leaseback deals, and where tanker rates sit in the cycle. Treat any single-point valuation with caution and read the latest 6-K and 20-F filings directly.
STNG. Figures are approximate and tied to the asOf date, so verify live numbers before acting. For a cyclical shipping company, earnings multiples matter less than where tanker rates sit in the cycle and what the fleet is worth net of debt: a low P/E can simply reflect peak-cycle earnings that may not repeat. Scorpio's deleveraging and capital returns have strengthened the story, but the stock is still fundamentally a bet on product-tanker freight markets. Nothing here is investment advice.
Headline figures (approximate, Jul 2026): PSHG shows market cap Very small, roughly $20 million in mid-2026 (a micro-cap); verify live figures before acting, recent share price Around a couple of dollars per share, well below levels seen before multiple reverse splits, fleet A handful of Aframax and Suezmax tankers plus newbuild LR2 Aframax product tankers, with older vessels being sold in 2026, revenue driver Charter rates (recent time charters near $31,000 per day); highly cyclical and rate-dependent; STNG shows revenue trend Highly cyclical, driven by product-tanker TCE rates; strong in firm markets and can fall quickly when rates soften. Verify live figures before acting., profitability High operating leverage: strong spot rates produce large profits, weak rates compress them fast, so earnings swing widely across the cycle. Verify live figures before acting., balance sheet / leverage Substantially deleveraged versus prior years, with average debt sharply reduced and a large cash position plus undrawn revolvers. Verify live figures before acting., valuation framing Often screened on net asset value (fleet value less debt) and cash flow rather than a simple P/E; a low multiple on peak-cycle earnings can be a trap. Verify live figures before acting..
The bottom line: PSHG vs STNG
PSHG and STNG are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined PSHG and STNG exposure against your real portfolio. It is not an investment adviser.
Wondering how PSHG or STNG fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Performance Shipping Inc with AI
Connect the broker you already use and ask Walnut's AI how PSHG fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between PSHG and STNG?
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Performance Shipping Inc is a Greece-based (Athens) shipowner that operates a fleet of crude and product tankers, historically Aframax and Suezmax vessels, and has been adding newbuild LR2 Aframax product tankers under sale-and-leaseback arrangements. Scorpio Tankers Inc is one of the world's largest owners and operators of product tankers, the ships that carry refined petroleum products such as gasoline, diesel, jet fuel, and naphtha (as opposed to crude oil). They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is PSHG or STNG the better stock?
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Neither is universally better. STNG is the larger incumbent; PSHG is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, PSHG or STNG?
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On forward P/E (as of August 2026), PSHG trades at 1.61x and STNG at 13.11x, so PSHG is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both PSHG and STNG?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of PSHG vs STNG?
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PSHG: The dominant risks are cyclicality and dilution. As a pure tanker owner, Performance Shipping's earnings can collapse if charter rates fall, and its tiny (~$20 million) market cap makes the stock volatile and thinly traded, so prices can move sharply on low volume. The company's history of reverse stock splits and discounted equity offerings means existing shareholders have repeatedly been diluted, and outstanding warrants and preferred shares (Series B and Series C) could dilute further. Governance is concentrated with the controlling shareholder and affiliated entities, with related-party debt restructurings and a past hostile takeover attempt underscoring the limited say of minority holders. Sale-and-leaseback financing on newbuilds adds fixed obligations that must be covered even in weak markets. This combination makes PSHG speculative and unsuitable for investors seeking stability or income. STNG: The dominant risk is shipping cyclicality: Scorpio's revenue and profits are tied to product-tanker spot rates, which can fall sharply if refined-product demand weakens, trade routes shorten, or a wave of newbuild vessels expands supply. Because much of the fleet trades in the spot market, earnings and the cash that funds dividends and buybacks can drop quickly. Geopolitics cuts both ways: disruptions can lift rates, but a normalization of trade routes can compress them. Fuel costs, drydocking, regulation, and environmental rules add expense and uncertainty, and newbuild orders create future capital commitments. Even with a stronger balance sheet, this remains a volatile, capital-intensive business whose stock can move sharply with the freight cycle, and past strong rates are no guarantee of future ones.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell PSHG or STNG; figures are approximate and dated (as of August 2026). Verify current data before investing.