Natural Health Trends (NASDAQ:NHTC – Get Free Report) and RLX Technology (NYSE:RLX – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.
Dividends
Natural Health Trends pays an annual dividend of $0.80 per share and has a dividend yield of 18.4%. RLX Technology pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Natural Health Trends pays out 1,600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RLX Technology pays out 16.7% of its earnings in the form of a dividend.
Insider & Institutional Ownership
10.1% of Natural Health Trends shares are owned by institutional investors. Comparatively, 22.7% of RLX Technology shares are owned by institutional investors. 9.6% of Natural Health Trends shares are owned by insiders. Comparatively, 53.4% of RLX Technology shares are owned 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natural Health Trends | 0 | 0 | 0 | 0 | 0.00 |
| RLX Technology | 0 | 1 | 0 | 0 | 2.00 |
RLX Technology has a consensus price target of $2.25, indicating a potential upside of 4.41%. Given RLX Technology’s stronger consensus rating and higher possible upside, analysts plainly believe RLX Technology is more favorable than Natural Health Trends.
Profitability
This table compares Natural Health Trends and RLX Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natural Health Trends | 1.18% | 1.48% | 0.89% |
| RLX Technology | 21.38% | 4.05% | 3.85% |
Risk and Volatility
Natural Health Trends has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, RLX Technology has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
Valuation and Earnings
This table compares Natural Health Trends and RLX Technology”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natural Health Trends | $42.96 million | 1.16 | $570,000.00 | $0.05 | 86.80 |
| RLX Technology | $376.55 million | 8.99 | $75.60 million | $0.06 | 35.92 |
RLX Technology has higher revenue and earnings than Natural Health Trends. RLX Technology is trading at a lower price-to-earnings ratio than Natural Health Trends, indicating that it is currently the more affordable of the two stocks.
Summary
RLX Technology beats Natural Health Trends on 13 of the 15 factors compared between the two stocks.
About Natural Health Trends
Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements, as well as topical gels. In addition, the company offers home appliances; and daily products, such as oral care, hair care, and body care. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.
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.
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