Koala (OTCMKTS:KARE) and RLX Technology (NYSE:RLX) Critical Analysis

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

Analyst Ratings

This is a summary of current ratings and target prices for RLX Technology and Koala, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	2	0	0	2.00
Koala	0	0	0	0	0.00

RLX Technology presently has a consensus target price of $2.25, suggesting a potential downside of 4.86%. Given Koala’s higher possible upside, analysts plainly believe Koala is more favorable than RLX Technology.

Earnings and Valuation

This table compares RLX Technology and Koala”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLX Technology	$2.92 billion	1.27	$75.60 million	$0.07	33.79
Koala	N/A	N/A	N/A	N/A	N/A

RLX Technology has higher revenue and earnings than Koala.

Insider & Institutional Ownership

22.7% of RLX Technology shares are owned by institutional investors. 53.4% of RLX Technology shares are owned by company insiders. Comparatively, 8.1% of Koala shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RLX Technology	22.32%	4.54%	4.29%
Koala	N/A	N/A	N/A

Summary

RLX Technology beats Koala on 7 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 Koala

Koala Corporation, doing business as Tech World, Inc., a technology company, offers technical services in the areas of security administration, architecture and paradigms, access management system and processes, applications development, operations, data encryption, telecommunications, network and WAN, business continuity planning, crime law, and investigation and ethics. It also provides alternative energy sources for commercial offices and residential houses, and retirement homes; secure and phone encryption communication services; cellular and wireless data services; and staff augmentation and forensic recovery services, as well as writes applications for mobile phones. In addition, the company offers products for the government market that include thermal imaging cameras, secure communication systems, cellular and satellite phones, ERP and CRM software, and RFID and tracking equipment; and the fuel industry, such as car and truck HHO systems, fuel additives, water-engine heating and home cooking systems, and acetylene replacements. Further, it provides products for the television (TV) market, including 2-D to 3-D conversion boxes, cable TV networks, Internet over cable systems, and satellite TV and data systems; and the telecom market, such as calling cards, direct VOIP systems, WI-max and mobile banking systems, network management products, and unified communication systems, as well as for green-energy and bank markets. The company was incorporated in 1993 and is based in Vienna, Virginia.