West Japan Railway (OTCMKTS:WJRYY) & Full Truck Alliance (NYSE:YMM) Head-To-Head Contrast

Full Truck Alliance (NYSE:YMM) and West Japan Railway (OTCMKTS:WJRYY) are both mid-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Full Truck Alliance and West Japan Railway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	3	6	0	2.67
West Japan Railway	1	0	0	0	1.00

Full Truck Alliance currently has a consensus target price of $11.30, suggesting a potential upside of 21.59%. Given Full Truck Alliance’s stronger consensus rating and higher possible upside, analysts clearly believe Full Truck Alliance is more favorable than West Japan Railway.

Volatility and Risk

Full Truck Alliance has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, West Japan Railway has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.

Insider & Institutional Ownership

39.0% of Full Truck Alliance shares are owned by institutional investors. 16.5% of Full Truck Alliance 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.

Profitability

This table compares Full Truck Alliance and West Japan Railway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Full Truck Alliance	32.68%	10.52%	9.56%
West Japan Railway	6.41%	9.36%	3.21%

Earnings and Valuation

This table compares Full Truck Alliance and West Japan Railway”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Full Truck Alliance	$1.79 billion	5.42	$630.36 million	$0.57	16.30
West Japan Railway	$12.26 billion	0.67	$846.98 million	$1.67	10.75

West Japan Railway has higher revenue and earnings than Full Truck Alliance. West Japan Railway is trading at a lower price-to-earnings ratio than Full Truck Alliance, indicating that it is currently the more affordable of the two stocks.

Dividends

Full Truck Alliance pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. West Japan Railway pays an annual dividend of $0.39 per share and has a dividend yield of 2.2%. Full Truck Alliance pays out 28.1% of its earnings in the form of a dividend. West Japan Railway pays out 23.4% 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. West Japan Railway is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Full Truck Alliance beats West Japan Railway on 11 of the 16 factors compared between the two stocks.

About Full Truck Alliance

Full Truck Alliance Co. Ltd., together with its subsidiaries, operates a digital freight platform that connects shippers with truckers to facilitate shipments across distance ranges, cargo weights, and types in the People's Republic of China. The company offers freight matching services, such as freight listing and brokerage services; and online transaction services, as well as various value-added services, such as credit solutions, insurance brokerage, software solutions, electronic toll collection, and energy services. It also provides technology development and other services. The company was founded in 2011 and is based in Guiyang, China.

About West Japan Railway

West Japan Railway Company provides railway transport services in Japan. The company operates through Mobility, Retail, Real Estate, Travel and Regional Solutions, and Other segments. The Mobility segment provides passenger transportation, station operation and management, cleaning and maintenance, construction, machinery and equipment installation, rolling stock and other facility construction services, as well as engages in the railway operations and electric works. The Retail segment sells goods; offers food and other wholesale operation services; and operates department stores. The Real Estate segment sells and leases real estate properties, as well as operates shopping centers and hotels. The Travel and Regional Solutions segment provides travel agency and regional solutions. The Other segment engages in the advertising and other businesses. The company is also involved in the operation of convenience stores, restaurants, and souvenir shops; and provision of credit cards and electronic money services. The company was incorporated in 1987 and is based in Osaka, Japan.