Contrasting XPO (NYSE:XPO) & Full Truck Alliance (NYSE:YMM)

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

Earnings and Valuation

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

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

Full Truck Alliance has lower revenue, but higher earnings 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.

Volatility & Risk

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

Insider and Institutional Ownership

97.7% of XPO shares are owned by institutional investors. Comparatively, 39.0% of Full Truck Alliance shares are owned by institutional investors. 0.9% of XPO shares are owned by insiders. Comparatively, 16.5% of Full Truck Alliance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Analyst Recommendations

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

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

XPO currently has a consensus target price of $222.64, indicating a potential upside of 19.31%. Full Truck Alliance has a consensus target price of $11.30, indicating a potential upside of 28.87%. Given Full Truck Alliance’s higher possible upside, analysts clearly believe Full Truck Alliance is more favorable than XPO.

Summary

XPO beats Full Truck Alliance on 9 of the 15 factors compared between the two stocks.

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.

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.