RLX Technology (NYSE:RLX) versus Traeger (NYSE:COOK) Head to Head Analysis

Traeger (NYSE:COOK) and RLX Technology (NYSE:RLX) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Traeger and RLX Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$604.07 million	0.27	-$34.01 million	($0.27)	-4.43
RLX Technology	$376.55 million	10.53	$75.60 million	$0.07	36.07

RLX Technology has lower revenue, but higher earnings than Traeger. Traeger is trading at a lower price-to-earnings ratio than RLX Technology, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Traeger and RLX Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	2	5	1	0	1.88
RLX Technology	0	2	0	0	2.00

Traeger presently has a consensus price target of $2.13, suggesting a potential upside of 77.82%. RLX Technology has a consensus price target of $2.25, suggesting a potential downside of 10.89%. Given Traeger’s higher possible upside, equities research analysts plainly believe Traeger is more favorable than RLX Technology.

Insider and Institutional Ownership

46.8% of Traeger shares are held by institutional investors. Comparatively, 22.7% of RLX Technology shares are held by institutional investors. 14.7% of Traeger shares are held by insiders. Comparatively, 53.4% of RLX Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Traeger has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, RLX Technology has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Traeger and RLX Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Traeger	-6.02%	-5.67%	-1.93%
RLX Technology	22.32%	4.54%	4.29%

Summary

RLX Technology beats Traeger on 9 of the 14 factors compared between the two stocks.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

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.