Head-To-Head Contrast: Full Truck Alliance (NYSE:YMM) versus Katapult (NASDAQ:KPLT)

Full Truck Alliance (NYSE:YMM) and Katapult (NASDAQ:KPLT) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Full Truck Alliance has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Katapult has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Full Truck Alliance	32.68%	10.52%	9.56%
Katapult	2.48%	-16.24%	7.63%

Earnings & Valuation

This table compares Full Truck Alliance and Katapult”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Full Truck Alliance	$1.79 billion	4.91	$630.36 million	$0.57	14.76
Katapult	$291.76 million	0.12	$1.37 million	$1.15	6.62

Full Truck Alliance has higher revenue and earnings than Katapult. Katapult 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 summary of current ratings and price targets for Full Truck Alliance and Katapult, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	3	5	0	2.62
Katapult	1	1	0	0	1.50

Full Truck Alliance currently has a consensus target price of $11.04, suggesting a potential upside of 31.16%. Katapult has a consensus target price of $10.00, suggesting a potential upside of 31.41%. Given Katapult’s higher probable upside, analysts clearly believe Katapult is more favorable than Full Truck Alliance.

Institutional and Insider Ownership

39.0% of Full Truck Alliance shares are held by institutional investors. Comparatively, 26.8% of Katapult shares are held by institutional investors. 16.5% of Full Truck Alliance shares are held by company insiders. Comparatively, 8.0% of Katapult shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Full Truck Alliance beats Katapult on 11 of the 14 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 Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.