Full Truck Alliance (NYSE:YMM) & MicroStrategy (NASDAQ:MSTR) Critical Review

Posted by MarketBeat News on Oct 18th, 2023

Full Truck Alliance (NYSE:YMM – Get Free Report) and MicroStrategy (NASDAQ:MSTR – Get Free Report) are both mid-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Risk & Volatility

Full Truck Alliance has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, MicroStrategy has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500.

Institutional and Insider Ownership

39.0% of Full Truck Alliance shares are held by institutional investors. Comparatively, 49.4% of MicroStrategy shares are held by institutional investors. 16.5% of Full Truck Alliance shares are held by company insiders. Comparatively, 22.6% of MicroStrategy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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This is a summary of current ratings and target prices for Full Truck Alliance and MicroStrategy, as provided by MarketBeat.

Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	1	2	0	2.67
MicroStrategy	1	0	4	0	2.60

Full Truck Alliance presently has a consensus price target of $9.33, indicating a potential upside of 31.46%. MicroStrategy has a consensus price target of $390.00, indicating a potential upside of 16.28%. Given Full Truck Alliance’s stronger consensus rating and higher probable upside, equities analysts plainly believe Full Truck Alliance is more favorable than MicroStrategy.

Profitability

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

Net Margins	Return on Equity	Return on Assets
Full Truck Alliance	21.26%	4.88%	4.48%
MicroStrategy	41.32%	140.01%	8.38%

Valuation & Earnings

This table compares Full Truck Alliance and MicroStrategy’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	$976.29 million	8.04	$58.97 million	$0.22	32.27
MicroStrategy	$499.26 million	9.47	-$1.47 billion	$8.99	37.31

Full Truck Alliance has higher revenue and earnings than MicroStrategy. Full Truck Alliance is trading at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.

Summary

MicroStrategy beats Full Truck Alliance on 10 of the 14 factors compared between the two stocks.

About Full Truck Alliance

(Get Free Report)

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, 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 MicroStrategy

(Get Free Report)

MicroStrategy Incorporated provides enterprise analytics software and services in the United States, Canada, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy, an enterprise analytics software platform that enables users to create visualizations, customize apps, and embed analytics directly into workflows; and MicroStrategy Cloud Environment, a managed software-as-a-service solution, which offers always-on threat monitoring and enables rapid analytics development and deployment to deliver security and data privacy requirements. The company also provides MicroStrategy Support that helps customers to achieve their system availability and uptime goals, and to improve the overall experience through highly responsive troubleshooting and proactive technical product support. In addition, it offers MicroStrategy Consulting, which offers customers with architecture and implementation services to help them quickly realize results, as well as helps to achieve returns on investment derived from understanding of data; and MicroStrategy Education that provides free and paid learning options, as well as holds and acquires bitcoin. The company offers its services through enterprise sales force and channel partners. It serves companies from a range of industries, including banking, technology, consulting, manufacturing, insurance, healthcare, and telecommunications, as well as the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.

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