Contrasting RLX Technology (NYSE:RLX) & Colruyt (OTCMKTS:CUYTY)

RLX Technology (NYSE:RLX) and Colruyt (OTCMKTS:CUYTY) are both mid-cap 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, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for RLX Technology and Colruyt, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	2	0	0	2.00
Colruyt	1	1	0	0	1.50

RLX Technology currently has a consensus target price of $2.50, indicating a potential upside of 14.42%. Given RLX Technology’s stronger consensus rating and higher possible upside, equities analysts clearly believe RLX Technology is more favorable than Colruyt.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RLX Technology	23.27%	5.74%	5.28%
Colruyt	N/A	N/A	N/A

Dividends

RLX Technology pays an annual dividend of $0.10 per share and has a dividend yield of 4.6%. Colruyt pays an annual dividend of $0.21 per share and has a dividend yield of 2.2%. RLX Technology pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

RLX Technology has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Colruyt has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

22.7% of RLX Technology shares are held by institutional investors. Comparatively, 0.0% of Colruyt shares are held by institutional investors. 53.4% of RLX Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLX Technology	$566.11 million	6.06	$131.83 million	$0.09	24.28
Colruyt	$11.77 billion	0.40	$362.36 million	N/A	N/A

Colruyt has higher revenue and earnings than RLX Technology.

Summary

RLX Technology beats Colruyt on 10 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 Colruyt

Colruyt Group N.V., together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, Luxembourg, and internationally. It operates through three segments: Retail, Wholesale and Foodservice, and Other Activities. The company provides groceries, fresh products, dry products, and frozen and non-food products; and operates CNG, hydrogen filling, and charging stations. It also provides printing and document management solutions; and develops, constructs, operates, maintains, and finances wind energy projects. The company offers its products and services under the Bike Republic, Bio-Planet, Boni Selection, Collect&Go, Colruyt Group Academy, Colruyt Lowest Prices, Colruyt Prix Qualité, Cru, DATS 24, Dreambaby, Dreamland, Everyday, Graindor, Kangourou, Okay, Spar Colruyt Group, Xtra, Jims, Newpharma, The Fashion Society, Codifrance, Colex, Solucious, Spar For You, and Symeta Hybrid brands. It provides its products and services to wholesalers, commercial customers, and affiliated independent merchants, as well as schools, care homes, the hospitality sector, etc. The company was formerly known as Etn. Fr. Colruyt NV and changed its name to Colruyt Group N.V. in October 2023. The company was founded in 1928 and is headquartered in Halle, Belgium.