RXO (NYSE:RXO – Get Free Report) and Full Truck Alliance (NYSE:YMM – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares RXO and Full Truck Alliance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RXO | -1.72% | -0.98% | -0.45% |
| Full Truck Alliance | 33.07% | 10.68% | 9.65% |
Volatility and Risk
RXO has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Full Truck Alliance has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.
Earnings & Valuation
This table compares RXO and Full Truck Alliance”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RXO | $5.74 billion | 0.82 | -$100.00 million | ($0.61) | -46.99 |
| Full Truck Alliance | $1.79 billion | 5.12 | $630.36 million | $0.59 | 14.86 |
Full Truck Alliance has lower revenue, but higher earnings than RXO. RXO 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.
Analyst Recommendations
This is a breakdown of current ratings for RXO and Full Truck Alliance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RXO | 1 | 16 | 3 | 0 | 2.10 |
| Full Truck Alliance | 0 | 3 | 6 | 0 | 2.67 |
RXO currently has a consensus target price of $26.08, suggesting a potential downside of 9.00%. Full Truck Alliance has a consensus target price of $11.30, suggesting a potential upside of 28.87%. Given Full Truck Alliance’s stronger consensus rating and higher probable upside, analysts clearly believe Full Truck Alliance is more favorable than RXO.
Insider & Institutional Ownership
92.7% of RXO shares are owned by institutional investors. Comparatively, 39.0% of Full Truck Alliance shares are owned by institutional investors. 0.8% of RXO shares are owned by insiders. Comparatively, 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 RXO on 11 of the 14 factors compared between the two stocks.
About RXO
RXO, Inc. provides full truckload freight transportation brokering services. It also offers brokered services for managed transportation, last mile, and freight forwarding. The company was incorporated in 2022 and is based in Charlotte, North Carolina.
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.
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