Critical Review: Full Truck Alliance (NYSE:YMM) & RXO (NYSE:RXO)

RXO (NYSE:RXO – Get Free Report) and Full Truck Alliance (NYSE:YMM – Get Free Report) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

92.7% of RXO shares are held by institutional investors. Comparatively, 39.0% of Full Truck Alliance shares are held by institutional investors. 0.8% of RXO shares are held by insiders. Comparatively, 16.5% of Full Truck Alliance shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for RXO and Full Truck Alliance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RXO 1 15 4 0 2.15
Full Truck Alliance 0 3 6 0 2.67

RXO presently has a consensus target price of $26.08, indicating a potential downside of 10.25%. Full Truck Alliance has a consensus target price of $11.30, indicating a potential upside of 32.03%. Given Full Truck Alliance’s stronger consensus rating and higher probable upside, analysts plainly believe Full Truck Alliance is more favorable than RXO.

Profitability

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

Net Margins Return on Equity Return on Assets
RXO -1.72% -0.98% -0.45%
Full Truck Alliance 33.07% 10.68% 9.65%

Volatility and Risk

RXO has a beta of 2.1, suggesting that its share price is 110% 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.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RXO $5.74 billion 0.83 -$100.00 million ($0.61) -47.64
Full Truck Alliance $1.79 billion 4.99 $630.36 million $0.59 14.50

Full Truck Alliance has lower revenue, but higher earnings than RXO. RXO 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.

Summary

Full Truck Alliance beats RXO on 11 of the 14 factors compared between the two stocks.

About RXO

(Get Free Report)

RXO, Inc. provides full truckload freight transportation brokering services. It also offers brokered services for managed transportation, last mile, and freight forwarding. The company was incorporated in 2022 and is based in Charlotte, North Carolina.

About Full Truck Alliance

(Get Free Report)

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.

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