RLX Technology (NYSE:RLX) versus Sow Good (NASDAQ:SOWG) Head-To-Head Analysis

RLX Technology (NYSE:RLX) and Sow Good (NASDAQ:SOWG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

RLX Technology has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for RLX Technology and Sow Good, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	2	0	0	2.00
Sow Good	1	3	0	0	1.75

RLX Technology presently has a consensus target price of $2.25, suggesting a potential downside of 7.60%. Sow Good has a consensus target price of $4.25, suggesting a potential upside of 468.79%. Given Sow Good’s higher probable upside, analysts clearly believe Sow Good is more favorable than RLX Technology.

Institutional & Insider Ownership

22.7% of RLX Technology shares are held by institutional investors. Comparatively, 10.7% of Sow Good shares are held by institutional investors. 53.4% of RLX Technology shares are held by company insiders. Comparatively, 50.1% of Sow Good shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RLX Technology	22.32%	4.54%	4.29%
Sow Good	-154.31%	-46.08%	-26.61%

Valuation & Earnings

This table compares RLX Technology and Sow Good”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLX Technology	$376.55 million	10.16	$75.60 million	$0.07	34.79
Sow Good	$31.99 million	0.29	-$3.70 million	($1.32)	-0.57

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

Summary

RLX Technology beats Sow Good on 11 of the 13 factors compared between the two stocks.

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.

About Sow Good

Sow Good Inc. is engaged in producing nutritious products in the freeze-dried food industry. Sow Good Inc., formerly known as Black Ridge Oil and Gas Inc., is based in IRVING, Texas.