Comparing Full Truck Alliance (NYSE:YMM) & CS Disco (NYSE:LAW)

Full Truck Alliance (NYSE:YMM) and CS Disco (NYSE:LAW) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Full Truck Alliance has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, CS Disco has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Full Truck Alliance	26.48%	7.23%	6.52%
CS Disco	-23.03%	-15.04%	-13.17%

Insider and Institutional Ownership

39.0% of Full Truck Alliance shares are owned by institutional investors. Comparatively, 58.1% of CS Disco shares are owned by institutional investors. 16.5% of Full Truck Alliance shares are owned by insiders. Comparatively, 22.3% of CS Disco 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.

Earnings & Valuation

This table compares Full Truck Alliance and CS Disco’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Full Truck Alliance	$1.19 billion	N/A	$311.68 million	$0.32	24.72
CS Disco	$138.09 million	2.67	-$42.15 million	($0.54)	-11.37

Full Truck Alliance has higher revenue and earnings than CS Disco. CS Disco 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 Ratings

This is a summary of current recommendations and price targets for Full Truck Alliance and CS Disco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full Truck Alliance	0	1	1	1	3.00
CS Disco	1	3	3	0	2.29

Full Truck Alliance presently has a consensus target price of $9.50, suggesting a potential upside of 20.10%. CS Disco has a consensus target price of $9.31, suggesting a potential upside of 51.67%. Given CS Disco’s higher probable upside, analysts clearly believe CS Disco is more favorable than Full Truck Alliance.

Summary

Full Truck Alliance beats CS Disco on 9 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 CS Disco

CS Disco, Inc. provides cloud-native and artificial intelligence-powered legal solutions for legal hold, legal request, ediscovery, legal document review, and case management in the United States and internationally. It offers DISCO Request, a solution that automates response compliance for legal requests; and DISCO Ediscovery, a solution that automates the ediscovery process and saves legal departments from manual tasks associated with collecting, processing, enriching, searching, reviewing, analyzing, producing, and using enterprise data that is at issue in legal matters. The company also provides DISCO Hold, a solution that automates manual work to preserve data, notify custodians, track holds with a defensible audit trail, and collect data when ready; DISCO Review, an AI-powered document review solution that delivers legal document reviews; and DISCO Case Builder, a solution that allows legal professionals to collaborate with teams to build a compelling case by offering a single place to search, organize, and review witness testimony and other legal data. The company's solutions are used in various legal matters comprising litigation, investigation, compliance, and diligence. It serves enterprises, law firms, legal services providers, and governments. CS Disco, Inc. was founded in 2012 and is headquartered in Austin, Texas.