Comparing Full Truck Alliance (NYSE:YMM) & Knight-Swift Transportation (NYSE:KNX)

Full Truck Alliance (NYSE:YMM) and Knight-Swift Transportation (NYSE:KNX) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Volatility and Risk

Full Truck Alliance has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Knight-Swift Transportation has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Full Truck Alliance and Knight-Swift Transportation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Full Truck Alliance	$1.79 billion	4.94	$630.36 million	$0.59	14.33
Knight-Swift Transportation	$7.73 billion	1.36	$65.95 million	$0.26	248.97

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Full Truck Alliance and Knight-Swift Transportation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	3	6	0	2.67
Knight-Swift Transportation	0	3	15	2	2.95

Full Truck Alliance presently has a consensus price target of $11.30, indicating a potential upside of 33.60%. Knight-Swift Transportation has a consensus price target of $83.89, indicating a potential upside of 29.60%. Given Full Truck Alliance’s higher possible upside, research analysts plainly believe Full Truck Alliance is more favorable than Knight-Swift Transportation.

Profitability

This table compares Full Truck Alliance and Knight-Swift Transportation’s 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%
Knight-Swift Transportation	0.56%	3.51%	2.04%

Dividends

Full Truck Alliance pays an annual dividend of $0.32 per share and has a dividend yield of 3.8%. Knight-Swift Transportation pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Full Truck Alliance pays out 54.2% of its earnings in the form of a dividend. Knight-Swift Transportation pays out 307.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Knight-Swift Transportation has raised its dividend for 6 consecutive years. Full Truck Alliance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

39.0% of Full Truck Alliance shares are owned by institutional investors. Comparatively, 88.8% of Knight-Swift Transportation shares are owned by institutional investors. 16.5% of Full Truck Alliance shares are owned by insiders. Comparatively, 2.9% of Knight-Swift Transportation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Full Truck Alliance beats Knight-Swift Transportation on 10 of the 18 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 Knight-Swift Transportation

Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides freight transportation services in the United States and Mexico. The company operates through four segments: Truckload, Less-than-truckload (LTL), Logistics, and Intermodal. The Truckload segment provides transportation services, which include irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. This segment operated an average of 20,948 tractors, which comprised 18,821 company tractors and 2,127 independent contractor tractors, as well as 87,865 trailers. The LTL segment provides regional LTL transportation services through a network of approximately 120 service centers; and offers national coverage through partner carrier outside the network. This segment operated an average of 3,201 tractors and 8,482 trailers. The Logistic segment offers brokerage and other freight management services through third-party transportation providers and equipment. The Intermodal segment offers transportation services, including freight through third-party intermodal rail services on trailing equipment, such as containers and trailers on flat cars; and drayage services. This segment operated an average of 639 tractors and 12,730 intermodal containers. The company also provides repair and maintenance shop, equipment leasing, warranty, and insurance services; and warehousing and driving academy services, as well as manufactures trailer parts. It serves retail, food and beverage, consumer and paper products, transportation and logistics, housing, and building, automotive, and manufacturing industries. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona.