Critical Analysis: RLX Technology (RLX) versus Its Competitors

RLX Technology (NYSE:RLX) is one of 46 public companies in the “CONSM PD – MISC DIS” industry, but how does it weigh in compared to its competitors? We will compare RLX Technology to related businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Dividends

RLX Technology pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. RLX Technology pays out 16.7% of its earnings in the form of a dividend. As a group, “CONSM PD – MISC DIS” companies pay a dividend yield of 3.1% and pay out 71.3% of their earnings in the form of a dividend.

Risk & Volatility

RLX Technology has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, RLX Technology’s competitors have a beta of -0.49, meaning that their average stock price is 149% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for RLX Technology and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	1	0	0	2.00
RLX Technology Competitors	115	908	997	28	2.46

RLX Technology currently has a consensus target price of $2.25, indicating a potential upside of 6.89%. As a group, “CONSM PD – MISC DIS” companies have a potential upside of 27.05%. Given RLX Technology’s competitors stronger consensus rating and higher probable upside, analysts clearly believe RLX Technology has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares RLX Technology and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RLX Technology	$376.55 million	$75.60 million	35.08
RLX Technology Competitors	$2.74 billion	$125.74 million	3.37

RLX Technology’s competitors have higher revenue and earnings than RLX Technology. RLX Technology is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares RLX Technology and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RLX Technology	21.38%	4.05%	3.85%
RLX Technology Competitors	-0.12%	0.85%	0.63%

Insider & Institutional Ownership

22.7% of RLX Technology shares are owned by institutional investors. Comparatively, 40.3% of shares of all “CONSM PD – MISC DIS” companies are owned by institutional investors. 53.4% of RLX Technology shares are owned by insiders. Comparatively, 22.2% of shares of all “CONSM PD – MISC DIS” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

RLX Technology competitors beat RLX Technology on 8 of the 15 factors compared.

RLX Technology Company Profile

RLX Technology Inc., together with its subsidiaries, engages in the manufacture and sale of e-vapor products in the People's Republic of China and internationally. It serves partner distributors and retail outlets. The company was founded in 2018 and is headquartered in Beijing, China.