Comprehensive Stock Comparison
Compare Karooooo Ltd. (KARO) vs Full Truck Alliance Co. Ltd. (YMM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | YMM | 33.2% revenue growth vs KARO's 8.6% |
| Value | KARO | Lower P/E (1.4x vs 2.0x) |
| Quality / Margins | YMM | 34.4% net margin vs KARO's 19.5% |
| Stability / Safety | YMM | Beta 0.96 vs KARO's 0.99, lower leverage |
| Dividends | KARO | 2.7% yield, 4-year raise streak, vs YMM's 1.6% |
| Momentum (1Y) | KARO | +7.1% vs YMM's -18.6% |
| Efficiency (ROA) | KARO | 19.6% ROA vs YMM's 9.8%, ROIC 34.4% vs 6.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Karooooo operates a mobility software-as-a-service platform that provides real-time vehicle tracking, fleet management, and logistics solutions primarily for commercial fleets across multiple continents. The company generates revenue through subscription-based SaaS fees for its telematics platform—which includes fleet management, asset tracking, and insurance analytics services—with the majority coming from recurring subscriptions. Its competitive advantage lies in its comprehensive, integrated platform that combines real-time data analytics with deep operational insights, creating switching costs for fleet operators who rely on its ecosystem for efficiency and risk management.
Full Truck Alliance operates China's largest digital freight platform connecting shippers with truckers for efficient logistics matching. It generates revenue primarily from freight brokerage commissions and value-added services — including credit solutions, insurance brokerage, and energy services — with its core matching platform driving the majority of earnings. The company's network effects create a powerful moat, as its massive scale of shippers and truckers makes it increasingly difficult for competitors to match its liquidity and efficiency.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
KARO leads in 3 of 6 categories (Valuation Metrics, Total Returns). YMM leads in 1 (Financial Metrics). 2 tied.
Financial Metrics (TTM)
YMM is the larger business by revenue, generating $12.1B annually — 2.3x KARO's $5.2B. YMM is the more profitable business, keeping 34.4% of every revenue dollar as net income compared to KARO's 19.5%.
| Metric | KAROKarooooo Ltd. | YMMFull Truck Allian… |
|---|---|---|
| RevenueTrailing 12 months | $5.2B | $12.1B |
| EBITDAEarnings before interest/tax | $2.2B | $4.0B |
| Net IncomeAfter-tax profit | $1.0B | $4.2B |
| Free Cash FlowCash after capex | $0 | $0 |
| Gross MarginGross profit ÷ Revenue | +69.3% | +71.3% |
| Operating MarginEBIT ÷ Revenue | +27.7% | +32.4% |
| Net MarginNet income ÷ Revenue | +19.5% | +34.4% |
| FCF MarginFCF ÷ Revenue | +20.3% | +25.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.8% | +17.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +9.2% | +29.4% |
Valuation Metrics
At 21.9x trailing earnings, YMM trades at a 14% valuation discount to KARO's 25.3x P/E. On an enterprise value basis, KARO's 11.0x EV/EBITDA is more attractive than YMM's 51.5x.
| Metric | KAROKarooooo Ltd. | YMMFull Truck Allian… |
|---|---|---|
| Market CapShares × price | $1.5B | $20.0B |
| Enterprise ValueMkt cap + debt − cash | $1.4B | $19.2B |
| Trailing P/EPrice ÷ TTM EPS | 25.30x | 21.89x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.40x | 1.97x |
| PEG RatioP/E ÷ EPS growth rate | 1.58x | — |
| EV / EBITDAEnterprise value multiple | 11.00x | 51.48x |
| Price / SalesMarket cap ÷ Revenue | 5.10x | 12.21x |
| Price / BookPrice ÷ Book value/share | 7.16x | 1.76x |
| Price / FCFMarket cap ÷ FCF | 25.09x | 47.38x |
Profitability & Efficiency
KARO delivers a 31.6% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $10 for YMM. YMM carries lower financial leverage with a 0.00x debt-to-equity ratio, signaling a more conservative balance sheet compared to KARO's 0.22x. On the Piotroski fundamental quality scale (0–9), YMM scores 8/9 vs KARO's 6/9, reflecting strong financial health.
| Metric | KAROKarooooo Ltd. | YMMFull Truck Allian… |
|---|---|---|
| ROE (TTM)Return on equity | +31.6% | +10.5% |
| ROA (TTM)Return on assets | +19.6% | +9.8% |
| ROICReturn on invested capital | +34.4% | +6.0% |
| ROCEReturn on capital employed | +37.6% | +6.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 0.22x | 0.00x |
| Net DebtTotal debt minus cash | -$319M | -$5.7B |
| Cash & Equiv.Liquid assets | $1.0B | $5.8B |
| Total DebtShort + long-term debt | $728M | $65M |
| Interest CoverageEBIT ÷ Interest expense | 28.64x | — |
Total Returns (with DRIP)
A $10,000 investment in KARO five years ago would be worth $15,004 today (with dividends reinvested), compared to $4,513 for YMM. Over the past 12 months, KARO leads with a +7.1% total return vs YMM's -18.6%. The 3-year compound annual growth rate (CAGR) favors KARO at 25.7% vs YMM's 11.5% — a key indicator of consistent wealth creation.
| Metric | KAROKarooooo Ltd. | YMMFull Truck Allian… |
|---|---|---|
| YTD ReturnYear-to-date | +5.7% | -16.6% |
| 1-Year ReturnPast 12 months | +7.1% | -18.6% |
| 3-Year ReturnCumulative with dividends | +98.4% | +38.6% |
| 5-Year ReturnCumulative with dividends | +50.0% | -54.9% |
| 10-Year ReturnCumulative with dividends | +50.0% | -54.9% |
| CAGR (3Y)Annualised 3-year return | +25.7% | +11.5% |
Risk & Volatility
YMM is the less volatile stock with a 0.96 beta — it tends to amplify market swings less than KARO's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. KARO currently trades 74.5% from its 52-week high vs YMM's 66.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KAROKarooooo Ltd. | YMMFull Truck Allian… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 0.96x |
| 52-Week HighHighest price in past year | $63.36 | $14.07 |
| 52-Week LowLowest price in past year | $35.88 | $9.36 |
| % of 52W HighCurrent price vs 52-week peak | +74.5% | +66.7% |
| RSI (14)Momentum oscillator 0–100 | 48.8 | 39.9 |
| Avg Volume (50D)Average daily shares traded | 38K | 7.5M |
Analyst Outlook
Wall Street rates KARO as "Buy" and YMM as "Buy". Consensus price targets imply 29.2% upside for KARO (target: $61) vs 24.4% for YMM (target: $12). For income investors, KARO offers the higher dividend yield at 2.68% vs YMM's 1.58%.
| Metric | KAROKarooooo Ltd. | YMMFull Truck Allian… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $61.00 | $11.67 |
| # AnalystsCovering analysts | 3 | 3 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | +1.6% |
| Dividend StreakConsecutive years of raises | 4 | 1 |
| Dividend / ShareAnnual DPS | $20.21 | $1.02 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Jul 21 | Feb 26 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 100 | 139 | +39.0% |
| Full Truck Alliance… (YMM) | 86.51 | 47.16 | -45.5% |
Karooooo Ltd. (KARO) returned +50% over 5 years vs Full Truck Alliance… (YMM)'s -55%. A $10,000 investment in KARO 5 years ago would be worth $15,004 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | $1.8B | $4.6B | +160.0% |
| Full Truck Alliance… (YMM) | $2.5B | $11.2B | +354.4% |
Karooooo Ltd.'s revenue grew from $1.8B (2019) to $4.6B (2025) — a 17.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 11.0% | 20.2% | +83.4% |
| Full Truck Alliance… (YMM) | -61.6% | 27.3% | +144.3% |
Karooooo Ltd.'s net margin went from 11% (2019) to 20% (2025).
Chart 4P/E Ratio History — 5 Years
| Stock | 2021 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 3.1 | 1.5 | -51.6% |
| Full Truck Alliance… (YMM) | 20 | 3.7 | -81.5% |
Karooooo Ltd. has traded in a 1x–3x P/E range over 5 years; current trailing P/E is ~25x. Full Truck Alliance Co. Ltd. has traded in a 4x–20x P/E range over 3 years; current trailing P/E is ~22x.
Chart 5EPS Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 9.5 | 29.81 | +213.8% |
| Full Truck Alliance… (YMM) | -1.42 | 2.94 | +307.0% |
Karooooo Ltd.'s EPS grew from $9.50 (2019) to $29.81 (2025) — a 21% CAGR.
Chart 6Free Cash Flow — 5 Years
Karooooo Ltd. generated $929M FCF in 2025 (+125% vs 2021). Full Truck Alliance Co. Ltd. generated $3B FCF in 2024 (+1237% vs 2021).
KARO vs YMM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is KARO or YMM a better buy right now?
Full Truck Alliance Co. Ltd. (YMM) offers the better valuation at 21.9x trailing P/E (2.0x forward), making it the more compelling value choice. Analysts rate Karooooo Ltd. (KARO) a "Buy" — based on 3 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — KARO or YMM?
On trailing P/E, Full Truck Alliance Co. Ltd. (YMM) is the cheapest at 21.9x versus Karooooo Ltd. at 25.3x. On forward P/E, Karooooo Ltd. is actually cheaper at 1.4x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — KARO or YMM?
Over the past 5 years, Karooooo Ltd. (KARO) delivered a total return of +50.0%, compared to -54.9% for Full Truck Alliance Co. Ltd. (YMM). A $10,000 investment in KARO five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: KARO returned +50.0% versus YMM's -54.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — KARO or YMM?
By beta (market sensitivity over 5 years), Full Truck Alliance Co. Ltd. (YMM) is the lower-risk stock at 0.96β versus Karooooo Ltd.'s 0.99β — meaning KARO is approximately 4% more volatile than YMM relative to the S&P 500. On balance sheet safety, Full Truck Alliance Co. Ltd. (YMM) carries a lower debt/equity ratio of 0% versus 22% for Karooooo Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — KARO or YMM?
Full Truck Alliance Co. Ltd. (YMM) is the more profitable company, earning 27.3% net margin versus 20.2% for Karooooo Ltd. — meaning it keeps 27.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KARO leads at 28.7% versus 22.0% for YMM. At the gross margin level — before operating expenses — YMM leads at 86.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is KARO or YMM more undervalued right now?
On forward earnings alone, Karooooo Ltd. (KARO) trades at 1.4x forward P/E versus 2.0x for Full Truck Alliance Co. Ltd. — 0.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KARO: 29.2% to $61.00.
07Which pays a better dividend — KARO or YMM?
All stocks in this comparison pay dividends. Karooooo Ltd. (KARO) offers the highest yield at 2.7%, versus 1.6% for Full Truck Alliance Co. Ltd. (YMM).
08Is KARO or YMM better for a retirement portfolio?
For long-horizon retirement investors, Karooooo Ltd. (KARO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.99), 2.7% yield). Both have compounded well over 10 years (KARO: +50.0%, YMM: -54.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between KARO and YMM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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