Full Truck Alliance (NYSE:YMM) versus DSV (OTCMKTS:DSDVY) Critical Analysis

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DSV	1	0	3	0	2.50
Full Truck Alliance	0	3	6	0	2.67

Full Truck Alliance has a consensus target price of $11.30, indicating a potential upside of 38.70%. Given Full Truck Alliance’s stronger consensus rating and higher probable upside, analysts clearly believe Full Truck Alliance is more favorable than DSV.

Earnings and Valuation

This table compares DSV 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
DSV	$37.45 billion	1.29	$1.23 billion	$3.29	30.44
Full Truck Alliance	$12.78 billion	0.66	$630.36 million	$0.59	13.80

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DSV	2.41%	9.38%	3.79%
Full Truck Alliance	33.07%	10.68%	9.65%

Volatility and Risk

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

Institutional & Insider Ownership

0.2% of DSV shares are owned by institutional investors. Comparatively, 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Full Truck Alliance beats DSV on 8 of the 14 factors compared between the two stocks.

About DSV

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.

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.