RLX Technology (NYSE:RLX) versus Central Garden & Pet (NASDAQ:CENT) Head to Head Survey

RLX Technology (NYSE:RLX) and Central Garden & Pet (NASDAQ:CENT) 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 dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Volatility & Risk

RLX Technology has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares RLX Technology and Central Garden & Pet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RLX Technology	21.05%	4.74%	4.44%
Central Garden & Pet	5.04%	10.99%	4.75%

Institutional and Insider Ownership

22.7% of RLX Technology shares are held by institutional investors. Comparatively, 16.1% of Central Garden & Pet shares are held by institutional investors. 53.4% of RLX Technology shares are held by insiders. Comparatively, 8.2% of Central Garden & Pet shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares RLX Technology and Central Garden & Pet”s 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	9.41	$75.60 million	$0.07	32.21
Central Garden & Pet	$3.13 billion	0.73	$162.84 million	$2.45	14.97

Central Garden & Pet has higher revenue and earnings than RLX Technology. Central Garden & Pet 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 Recommendations

This is a breakdown of recent recommendations and price targets for RLX Technology and Central Garden & Pet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	2	0	0	2.00
Central Garden & Pet	0	3	1	1	2.60

RLX Technology presently has a consensus target price of $2.25, indicating a potential downside of 0.22%. Central Garden & Pet has a consensus target price of $42.50, indicating a potential upside of 15.90%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than RLX Technology.

Summary

Central Garden & Pet beats RLX Technology on 9 of the 15 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 Central Garden & Pet

Central Garden & Pet Co. engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions. The Garden segment includes lawn and garden consumables such as grass, vegetable, flower and herb seed, wild bird feed, bird houses and other birding accessories, weed, grass, and other herbicides, insecticide and pesticide products, fertilizers, and live plants. The company was founded by William E. Brown in 1980 and is headquartered in Walnut Creek, CA.