Olaplex (NASDAQ:OLPX – Get Free Report) and RLX Technology (NYSE:RLX – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Risk and Volatility
Olaplex has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, RLX Technology has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Olaplex and RLX Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Olaplex | 0 | 4 | 0 | 0 | 2.00 |
| RLX Technology | 0 | 1 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares Olaplex and RLX Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Olaplex | $422.67 million | 2.03 | $19.52 million | $0.02 | 64.50 |
| RLX Technology | $376.55 million | 9.26 | $75.60 million | $0.06 | 37.00 |
RLX Technology has lower revenue, but higher earnings than Olaplex. RLX Technology is trading at a lower price-to-earnings ratio than Olaplex, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Olaplex and RLX Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Olaplex | -0.30% | 3.32% | 1.65% |
| RLX Technology | 21.38% | 4.05% | 3.85% |
Institutional and Insider Ownership
87.4% of Olaplex shares are owned by institutional investors. Comparatively, 22.7% of RLX Technology shares are owned by institutional investors. 4.3% of Olaplex shares are owned by company insiders. Comparatively, 53.4% of RLX Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
RLX Technology beats Olaplex on 7 of the 12 factors compared between the two stocks.
About Olaplex
Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.
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.
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