Full Truck Alliance (NYSE:YMM – Get Rating) and Red Violet (NASDAQ:RDVT – Get Rating) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
Full Truck Alliance has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Profitability
This table compares Full Truck Alliance and Red Violet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Full Truck Alliance | 5.53% | 1.36% | 1.26% |
| Red Violet | 1.16% | 0.87% | 0.81% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Full Truck Alliance | $976.29 million | 7.98 | $58.97 million | $0.05 | 141.03 |
| Red Violet | $53.32 million | 4.24 | $620,000.00 | $0.04 | 404.85 |
Full Truck Alliance has higher revenue and earnings than Red Violet. Full Truck Alliance is trading at a lower price-to-earnings ratio than Red Violet, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Full Truck Alliance and Red Violet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Full Truck Alliance | 0 | 1 | 3 | 0 | 2.75 |
| Red Violet | 0 | 0 | 0 | 0 | N/A |
Full Truck Alliance presently has a consensus price target of $11.00, suggesting a potential upside of 56.03%. Given Full Truck Alliance’s higher probable upside, equities research analysts clearly believe Full Truck Alliance is more favorable than Red Violet.
Institutional & Insider Ownership
36.7% of Full Truck Alliance shares are held by institutional investors. Comparatively, 53.1% of Red Violet shares are held by institutional investors. 16.5% of Full Truck Alliance shares are held by company insiders. Comparatively, 8.7% of Red Violet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Full Truck Alliance beats Red Violet on 10 of the 13 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 listing, matching, and brokerage services; and online transaction services, as well as various value-added services, such as credit solutions, insurance brokerage, 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 Red Violet
Red Violet, Inc. engages in the provision of software and proprietary technology services. It specializes in data analysis, which provides cloud-based, mission-critical information solutions to enterprises in a variety of industries. Its brands include IDI and Forewarn. The company was founded in August 2017 and is headquartered in Boca Raton, FL.
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