Analyzing Heartland Express (NASDAQ:HTLD) and Full Truck Alliance (NYSE:YMM)

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

Dividends

Full Truck Alliance pays an annual dividend of $0.33 per share and has a dividend yield of 3.8%. Heartland Express pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Full Truck Alliance pays out 55.9% of its earnings in the form of a dividend. Heartland Express pays out -50.0% 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.

Earnings & Valuation

This table compares Full Truck Alliance and Heartland Express”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Full Truck Alliance	$12.78 billion	0.71	$630.36 million	$0.59	14.77
Heartland Express	$805.71 million	1.01	-$52.45 million	($0.16)	-66.00

Full Truck Alliance has higher revenue and earnings than Heartland Express. Heartland Express 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.

Profitability

This table compares Full Truck Alliance and Heartland Express’ 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%
Heartland Express	-1.77%	0.30%	0.19%

Institutional & Insider Ownership

39.0% of Full Truck Alliance shares are owned by institutional investors. Comparatively, 53.4% of Heartland Express shares are owned by institutional investors. 16.5% of Full Truck Alliance shares are owned by insiders. Comparatively, 41.6% of Heartland Express shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Full Truck Alliance has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Heartland Express has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Full Truck Alliance and Heartland Express, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	3	6	0	2.67
Heartland Express	3	4	0	0	1.57

Full Truck Alliance currently has a consensus price target of $11.30, indicating a potential upside of 29.61%. Heartland Express has a consensus price target of $11.80, indicating a potential upside of 11.74%. Given Full Truck Alliance’s stronger consensus rating and higher probable upside, equities analysts plainly believe Full Truck Alliance is more favorable than Heartland Express.

Summary

Full Truck Alliance beats Heartland Express on 10 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 Heartland Express

Heartland Express, Inc., together with its subsidiaries, operates as a short-to-medium, and long-haul truckload carrier in the United States and Canada. It primarily provides nationwide asset-based dry van truckload service for shippers; cross-border freight and other transportation services; and temperature-controlled truckload services. The company offers its services under the Heartland Express and Millis Transfer brand names. It primarily serves retailers and manufacturers in consumer goods, appliances, food products, and automotive industries. The company was founded in 1978 and is headquartered in North Liberty, Iowa.