Contrasting Full Truck Alliance (NYSE:YMM) & Werner Enterprises (NASDAQ:WERN)

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

Institutional & Insider Ownership

39.0% of Full Truck Alliance shares are owned by institutional investors. Comparatively, 89.3% of Werner Enterprises shares are owned by institutional investors. 16.5% of Full Truck Alliance shares are owned by company insiders. Comparatively, 1.3% of Werner Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Full Truck Alliance has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Werner Enterprises has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Full Truck Alliance and Werner Enterprises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	3	6	0	2.67
Werner Enterprises	4	8	4	0	2.00

Full Truck Alliance presently has a consensus target price of $11.30, suggesting a potential upside of 25.19%. Werner Enterprises has a consensus target price of $37.14, suggesting a potential upside of 26.59%. Given Werner Enterprises’ higher probable upside, analysts clearly believe Werner Enterprises is more favorable than Full Truck Alliance.

Valuation & Earnings

This table compares Full Truck Alliance and Werner Enterprises”s gross 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	5.27	$630.36 million	$0.59	15.29
Werner Enterprises	$2.97 billion	0.59	-$14.40 million	($0.31)	-94.65

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

Profitability

This table compares Full Truck Alliance and Werner Enterprises’ 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%
Werner Enterprises	-0.56%	2.03%	0.88%

Dividends

Full Truck Alliance pays an annual dividend of $0.34 per share and has a dividend yield of 3.8%. Werner Enterprises pays an annual dividend of $0.56 per share and has a dividend yield of 1.9%. Full Truck Alliance pays out 57.6% of its earnings in the form of a dividend. Werner Enterprises pays out -180.6% 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. Werner Enterprises has increased its dividend for 4 consecutive years.

Summary

Full Truck Alliance beats Werner Enterprises on 11 of the 17 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 Werner Enterprises

Werner Enterprises, Inc., together with its subsidiaries, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, and internationally. The company operates through two segments, Truckload Transportation Services and Werner Logistics. The Truckload Transportation Services segment operates a fleet of medium-to-long-haul vans that transports various consumer nondurable products and other commodities in truckload quantities using dry van trailers; the expedited fleet, which offers time-sensitive truckload services using driver teams; a regional short-haul fleet that provides truckload van service in the United States; and temperature-controlled fleet, which offers truckload services for temperature-sensitive products using temperature-controlled trailers. This segment provides truckload services to retail distribution centers or manufacturing facilities using dry vans or trailers to transport retail store merchandise, consumer products, food and beverage products, and manufactured products. As of December 31, 2023, it had a fleet of 8,000 trucks, which included 7,740 company-operated, as well as 260 owned and operated by independent contractors; and 30,810 trailers that comprised dry vans, flatbeds, temperature-controlled, and other trailers. The Werner Logistics segment provides non-asset-based transportation and logistics services, including truck brokerage; logistics management services and solutions; rail transportation through alliances with rail and drayage providers; and residential and commercial deliveries of large or heavy items using liftgate straight trucks. As of December 31, 2023, this segment operated 35 drayage tractors and 115 delivery trucks. It also sells used trucks and trailers; and trades used trucks to original equipment manufacturers. The company was founded in 1956 and is headquartered in Omaha, Nebraska.