Comparing Full Truck Alliance (NYSE:YMM) & Universal Logistics (NASDAQ:ULH)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Universal Logistics and Full Truck Alliance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Logistics	1	2	0	0	1.67
Full Truck Alliance	0	3	6	0	2.67

Universal Logistics presently has a consensus price target of $15.00, indicating a potential downside of 14.48%. Full Truck Alliance has a consensus price target of $11.30, indicating a potential upside of 37.00%. Given Full Truck Alliance’s stronger consensus rating and higher probable upside, analysts clearly believe Full Truck Alliance is more favorable than Universal Logistics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Logistics	-3.16%	1.99%	0.62%
Full Truck Alliance	33.07%	10.68%	9.65%

Institutional & Insider Ownership

25.5% of Universal Logistics shares are owned by institutional investors. Comparatively, 39.0% of Full Truck Alliance shares are owned by institutional investors. 73.5% of Universal Logistics shares are owned by insiders. Comparatively, 16.5% of Full Truck Alliance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Universal Logistics 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
Universal Logistics	$1.56 billion	0.30	-$99.87 million	($1.84)	-9.53
Full Truck Alliance	$1.79 billion	4.81	$630.36 million	$0.59	13.97

Full Truck Alliance has higher revenue and earnings than Universal Logistics. Universal Logistics 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.

Risk & Volatility

Universal Logistics has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Full Truck Alliance has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Dividends

Universal Logistics pays an annual dividend of $0.42 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 3.9%. Universal Logistics pays out -22.8% 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.

Summary

Full Truck Alliance beats Universal Logistics on 13 of the 16 factors compared between the two stocks.

About Universal Logistics

Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. The company offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services. It transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. The company also provides value-added services for individual customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of steamship and rail truck containers between the port or railhead, and the customer. It serves automotive, steel, and other metals, retail and consumer goods, energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1932 and is headquartered in Warren, Michigan.

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.