Analyzing RLX Technology (RLX) and The Competition

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

Profitability

This table compares RLX Technology and its peers’ 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	0.03%	1.25%	0.50%

Analyst Ratings

This is a summary of recent recommendations and price targets for RLX Technology and its peers, 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	117	915	998	28	2.46

RLX Technology presently has a consensus target price of $2.25, suggesting a potential downside of 4.05%. As a group, “CONSM PD – MISC DIS” companies have a potential upside of 21.39%. Given RLX Technology’s peers stronger consensus rating and higher probable upside, analysts clearly believe RLX Technology has less favorable growth aspects than its peers.

Volatility & Risk

RLX Technology has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, RLX Technology’s peers have a beta of -0.51, suggesting that their average stock price is 151% less volatile than the S&P 500.

Earnings and Valuation

This table compares RLX Technology and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RLX Technology	$2.68 billion	$75.60 million	39.08
RLX Technology Competitors	$2.80 billion	$103.51 million	4.08

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

Institutional & Insider 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

RLX Technology peers beat RLX Technology on 7 of the 13 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.