Reviewing RLX Technology (NYSE:RLX) and Ceconomy (OTCMKTS:MTTRY)

Ceconomy (OTCMKTS:MTTRY) and RLX Technology (NYSE:RLX) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares Ceconomy and RLX Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceconomy	$25.51 billion	0.09	-$38.73 million	$0.08	11.25
RLX Technology	$376.55 million	9.99	$75.60 million	$0.07	34.21

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

Risk and Volatility

Ceconomy has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, RLX Technology has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceconomy	0	0	0	1	4.00
RLX Technology	0	2	0	0	2.00

RLX Technology has a consensus target price of $2.25, suggesting a potential downside of 6.05%. Given RLX Technology’s higher probable upside, analysts plainly believe RLX Technology is more favorable than Ceconomy.

Institutional and Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ceconomy	0.71%	46.82%	2.53%
RLX Technology	21.05%	4.74%	4.44%

Summary

RLX Technology beats Ceconomy on 8 of the 14 factors compared between the two stocks.

About Ceconomy

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.

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.