Financial Survey: RLX Technology (NYSE:RLX) vs. Colruyt (OTCMKTS:CUYTY)

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

Volatility and Risk

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

Analyst Ratings

This is a breakdown of recent recommendations for Colruyt and RLX Technology, as provided by MarketBeat.

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

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

Dividends

Colruyt pays an annual dividend of $0.21 per share and has a dividend yield of 2.2%. RLX Technology pays an annual dividend of $0.10 per share and has a dividend yield of 4.6%. 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.

Valuation & Earnings

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

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

Colruyt has higher revenue and earnings than RLX Technology.

Profitability

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

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

Insider & Institutional Ownership

0.0% of Colruyt shares are held by institutional investors. Comparatively, 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

RLX Technology beats Colruyt on 10 of the 13 factors compared between the two stocks.

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.

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.