Full Truck Alliance (NYSE:YMM) and DHL Group (OTCMKTS:DHLGY) Critical Analysis

DHL Group (OTCMKTS:DHLGY) and Full Truck Alliance (NYSE:YMM) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

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

Volatility & Risk

DHL Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Full Truck Alliance has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for DHL Group and Full Truck Alliance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHL Group	0	6	2	1	2.44
Full Truck Alliance	0	3	6	0	2.67

Full Truck Alliance has a consensus price target of $11.30, suggesting a potential upside of 30.74%. Given Full Truck Alliance’s stronger consensus rating and higher possible upside, analysts clearly believe Full Truck Alliance is more favorable than DHL Group.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHL Group	$93.72 billion	0.75	$3.96 billion	$2.86	11.13
Full Truck Alliance	$1.79 billion	5.04	$630.36 million	$0.59	14.64

DHL Group has higher revenue and earnings than Full Truck Alliance. DHL Group 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

DHL Group pays an annual dividend of $0.77 per share and has a dividend yield of 2.4%. Full Truck Alliance pays an annual dividend of $0.32 per share and has a dividend yield of 3.7%. DHL Group pays out 26.9% of its earnings in the form of a dividend. Full Truck Alliance pays out 54.2% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DHL Group	4.38%	16.98%	5.40%
Full Truck Alliance	33.07%	10.68%	9.65%

Summary

Full Truck Alliance beats DHL Group on 10 of the 17 factors compared between the two stocks.

About DHL Group

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.

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.