Contrasting RLX Technology (RLX) & 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 peers? We will compare RLX Technology to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Insider & Institutional Ownership

22.7% of RLX Technology shares are held by institutional investors. Comparatively, 40.3% of shares of all “CONSM PD – MISC DIS” companies are held by institutional investors. 53.4% of RLX Technology shares are held by insiders. Comparatively, 22.2% of shares of all “CONSM PD – MISC DIS” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
RLX Technology	$376.55 million	$75.60 million	37.67
RLX Technology Competitors	$2.74 billion	$103.51 million	3.69

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.

Volatility and Risk

RLX Technology has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, RLX Technology’s peers have a beta of -0.52, indicating that their average stock price is 152% less volatile than the S&P 500.

Dividends

RLX Technology pays an annual dividend of $0.01 per share and has a dividend yield of 0.4%. 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 72.0% of their earnings in the form of a dividend.

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 breakdown of recent recommendations and price targets for RLX Technology and its peers, as reported 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	118	916	999	29	2.46

RLX Technology presently has a consensus price target of $2.25, suggesting a potential downside of 0.44%. As a group, “CONSM PD – MISC DIS” companies have a potential upside of 21.77%. Given RLX Technology’s peers stronger consensus rating and higher possible upside, analysts clearly believe RLX Technology has less favorable growth aspects than its peers.

Summary

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

About RLX Technology

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.