Reviewing XPO (NYSE:XPO) and Full Truck Alliance (NYSE:YMM)

Full Truck Alliance (NYSE:YMM) and XPO (NYSE:XPO) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Full Truck Alliance and XPO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	3	6	0	2.67
XPO	1	5	19	1	2.77

Full Truck Alliance presently has a consensus target price of $11.30, suggesting a potential upside of 28.87%. XPO has a consensus target price of $222.64, suggesting a potential upside of 19.31%. Given Full Truck Alliance’s higher probable upside, equities research analysts plainly believe Full Truck Alliance is more favorable than XPO.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Full Truck Alliance	33.07%	10.68%	9.65%
XPO	4.71%	29.64%	6.75%

Earnings & Valuation

This table compares Full Truck Alliance and XPO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Full Truck Alliance	$1.79 billion	5.12	$630.36 million	$0.59	14.86
XPO	$8.16 billion	2.68	$316.00 million	$3.39	55.04

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

Insider & Institutional Ownership

39.0% of Full Truck Alliance shares are held by institutional investors. Comparatively, 97.7% of XPO shares are held by institutional investors. 16.5% of Full Truck Alliance shares are held by insiders. Comparatively, 0.9% of XPO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Full Truck Alliance has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, XPO has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Summary

XPO beats Full Truck Alliance on 9 of the 15 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 XPO

XPO, Inc. provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, North American LTL and European Transportation. The North American LTL segment provides customers with less-than-truckload (LTL) services, such as geographic density and day-definite domestic services. This segment also offers cross-border U.S., Mexico, Canada, and the Caribbean, as well as engages in the operation of trailer manufacturing. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, such as road-rail and road-short sea combinations. It provides its services to customers in various industries, such as industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. XPO, Inc. was incorporated in 2000 and is based in Greenwich, Connecticut.