RLX Technology (NYSE:RLX) versus Unicharm (OTCMKTS:UNICY) Critical Review

RLX Technology (NYSE:RLXGet Free Report) and Unicharm (OTCMKTS:UNICYGet 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, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Dividends

RLX Technology pays an annual dividend of $0.10 per share and has a dividend yield of 4.6%. Unicharm pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. 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. Unicharm pays out 25.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares RLX Technology and Unicharm”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RLX Technology $566.11 million 6.01 $131.83 million $0.09 24.06
Unicharm $6.32 billion 1.65 $436.93 million $0.12 25.00

Unicharm has higher revenue and earnings than RLX Technology. RLX Technology is trading at a lower price-to-earnings ratio than Unicharm, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for RLX Technology and Unicharm, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RLX Technology 0 2 0 0 2.00
Unicharm 0 1 0 1 3.00

RLX Technology presently has a consensus price target of $2.50, suggesting a potential upside of 15.47%. Given RLX Technology’s higher possible upside, analysts plainly believe RLX Technology is more favorable than Unicharm.

Profitability

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

Net Margins Return on Equity Return on Assets
RLX Technology 23.27% 5.74% 5.28%
Unicharm 6.33% 6.78% 4.93%

Volatility & Risk

RLX Technology has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Unicharm has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Institutional and Insider Ownership

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

About RLX Technology

(Get Free Report)

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 Unicharm

(Get Free Report)

Unicharm Corporation engages in the manufacturing and sale of wellness, feminine, baby and children, kirei, and pet care products in Japan and internationally. The company's baby and child care products, including disposable diapers and wipes under the Moony, MamyPoko, Oyasumiman, and Torepanman brands; feminine care products comprise napkins, tampons, panty liners, sanitary short, panty liners, and other feminine care products under the Sofy, Center-In, and Unicharm brand names; and wellness care products include napkin-type incontinence pads, pants-type diapers, tape-type diapers, pants-type specialized urine pads, and tape-type specialized urine pads under the Lifree and Charmnap brand. It also provides masks under the Unicharm brand; home care products, including cleaning sheets under the Wave brand name; cosmetic cotton and wet wipes under the Silcot brand; and paper towels under the Cook Up brand name. In addition, the company offers pet care products that include pet foods, excrement cleanup sheets, system toilets, and disposable diapers under the Grand Deli, Best Balance, Physicalife Dog, Silver Plate, Aiken Genki, Manner Wear, Deo Sheet, Silver Spoon, AllWell, Physicalife Cat, Deo Toilet, Deo Sand, Deo Clean, and Neko Genki brands; and deodorizing beads. Further, it is involved in the manufacture and sale of industrial materials related products, etc., as well as food-packaging materials. Unicharm Corporation was incorporated in 1941 and is headquartered in Tokyo, Japan.

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