RLX Technology (NYSE:RLX) vs. Electronic Cigarettes International Group (OTCMKTS:ECIG) Critical Analysis

RLX Technology (NYSE:RLX) and Electronic Cigarettes International Group (OTCMKTS:ECIG) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

22.7% of RLX Technology shares are owned by institutional investors. 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 company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for RLX Technology and Electronic Cigarettes International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	2	0	0	2.00
Electronic Cigarettes International Group	0	0	0	0	0.00

RLX Technology presently has a consensus target price of $2.50, suggesting a potential upside of 23.76%. Given RLX Technology’s stronger consensus rating and higher possible upside, analysts plainly believe RLX Technology is more favorable than Electronic Cigarettes International Group.

Earnings & Valuation

This table compares RLX Technology and Electronic Cigarettes International Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLX Technology	$4.38 billion	0.71	$131.83 million	$0.10	20.20
Electronic Cigarettes International Group	N/A	N/A	N/A	N/A	N/A

RLX Technology has higher revenue and earnings than Electronic Cigarettes International Group.

Profitability

This table compares RLX Technology and Electronic Cigarettes International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RLX Technology	20.76%	6.15%	5.60%
Electronic Cigarettes International Group	N/A	N/A	N/A

Summary

RLX Technology beats Electronic Cigarettes International Group on 8 of the 8 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 Electronic Cigarettes International Group

Electronic Cigarettes International Group Ltd. engages in the marketing and distribution of vaping products and electronic cigarettes. Its brand portfolio include VAPESTICK, FIN, Victory, GreenStix, VIP, E-CIG, and Pro Vapor. The company was founded by Marc Hardgrove on May 19, 2004 and is headquartered in Golden, CO.