Critical Contrast: Full Truck Alliance (NYSE:YMM) vs. Lyft (NASDAQ:LYFT)

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

Institutional and Insider Ownership

39.0% of Full Truck Alliance shares are owned by institutional investors. Comparatively, 83.1% of Lyft shares are owned by institutional investors. 16.5% of Full Truck Alliance shares are owned by insiders. Comparatively, 0.9% of Lyft shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Full Truck Alliance and Lyft’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%
Lyft	40.67%	1.25%	0.42%

Volatility and Risk

Full Truck Alliance has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Lyft has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.

Earnings & Valuation

This table compares Full Truck Alliance and Lyft”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	14.35
Lyft	$6.32 billion	1.00	$2.84 billion	$6.74	2.46

Lyft has higher revenue and earnings than Full Truck Alliance. Lyft 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 recent ratings and recommmendations for Full Truck Alliance and Lyft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	3	6	0	2.67
Lyft	2	26	10	0	2.21

Full Truck Alliance presently has a consensus target price of $11.30, indicating a potential upside of 33.41%. Lyft has a consensus target price of $18.89, indicating a potential upside of 13.72%. Given Full Truck Alliance’s stronger consensus rating and higher probable upside, research analysts plainly believe Full Truck Alliance is more favorable than Lyft.

Summary

Lyft beats Full Truck Alliance on 8 of the 14 factors compared between the two stocks.

About Full Truck Alliance

Full Truck Alliance Co. Ltd. operates a digital freight platform in China that connects businesses and other cargo shippers with truck drivers. Its platform helps users find and arrange road transportation, matching freight orders with available trucks. The company was formed in 2017 through the merger of Chinese freight platforms Yunmanman and Huochebang. Its services include freight matching and tools for arranging and managing shipments. Full Truck Alliance is focused on the Chinese market. Co-founder Zhang Hui serves as the company’s chairman and chief executive officer.

About Lyft

Lyft operates a mobile platform that connects people seeking transportation with drivers who provide rides. Through its app, customers can request on-demand trips, schedule rides in advance, and access other ride options where available. The company also offers Lyft Pink, a membership program with benefits for eligible rides and services. Lyft provides transportation programs for businesses and organizations through Lyft Business, including tools for arranging and managing rides. The company’s platform primarily serves markets in the United States and Canada.