RLX Technology (NYSE:RLX) and Electronic Cigarettes International Group (OTCMKTS:ECIG) Financial Analysis

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

Analyst Ratings

This is a breakdown of current ratings for Electronic Cigarettes International Group and RLX Technology, as reported by MarketBeat.com.

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

RLX Technology has a consensus price target of $2.50, indicating a potential upside of 27.88%. Given RLX Technology’s stronger consensus rating and higher probable upside, analysts clearly believe RLX Technology is more favorable than Electronic Cigarettes International Group.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electronic Cigarettes International Group	N/A	N/A	N/A	N/A	N/A
RLX Technology	$566.11 million	5.35	$131.83 million	$0.10	19.55

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

Profitability

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

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

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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

RLX Technology beats Electronic Cigarettes International Group on 8 of the 8 factors compared between the two stocks.

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.

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.