Critical Contrast: Swedish Match AB (publ) (OTCMKTS:SWMAF) versus RLX Technology (NYSE:RLX)

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

Institutional & Insider Ownership

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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Swedish Match AB (publ) and RLX Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swedish Match AB (publ)	N/A	N/A	N/A
RLX Technology	20.24%	6.20%	5.65%

Analyst Recommendations

This is a breakdown of current recommendations for Swedish Match AB (publ) and RLX Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swedish Match AB (publ)	0	0	0	0	0.00
RLX Technology	0	2	0	0	2.00

RLX Technology has a consensus price target of $2.50, suggesting a potential upside of 37.36%. Given RLX Technology’s stronger consensus rating and higher probable upside, analysts plainly believe RLX Technology is more favorable than Swedish Match AB (publ).

Valuation and Earnings

This table compares Swedish Match AB (publ) and RLX Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swedish Match AB (publ)	N/A	N/A	N/A	N/A	N/A
RLX Technology	$566.11 million	4.98	$131.83 million	$0.10	18.20

RLX Technology has higher revenue and earnings than Swedish Match AB (publ).

Summary

RLX Technology beats Swedish Match AB (publ) on 8 of the 8 factors compared between the two stocks.

About Swedish Match AB (publ)

Swedish Match AB (publ) develops, manufactures, markets, and sells snus and moist snuff, lights, and other tobacco products in Scandinavia, the United States, and internationally. The company operates through Smokefree, Cigars, and Lights segments. It provides snus and pouch products, nicotine pouches, nicotine free products, and moist snuff under the General, Göteborgs Rapé, Kaliber, Kronan, Ettan, Grov, Catch, G.3, The Lab, Nick & Johnny, Thunder, VOLT, Swave, ZYN, G.4, Onico, Qvitt, Longhorn, and Timber Wolf brand names. The company offers chewing tobacco products under the Red Man and Big Duke brand names; chew bags under the Thunder and Göteborgs Rapé brands; and tobacco bits under the Oliver Twist brand name. In addition, it provides cigars under the Garcia y Vega, Game by Garcia y Vega, 1882, White Owl, and Jackpot brands; matches under the Solstickan, Nitedals, Fiat Lux, and Redheads brand names; lighters under the Cricket brand; and complementary products, such as razors, batteries, and light bulbs under the Fiat Lux brand name. Further, the company distributes third party tobacco products. It markets its products through convenience stores, tobacconists, gasoline stations, supermarkets, bars, restaurants, airports, and ferries, as well as e-commerce and own stores. The company was founded in 1915 and is headquartered in Stockholm, Sweden. As of November 25, 2022, Swedish Match AB (publ) operates as a subsidiary of Philip Morris Holland Holdings B.V..

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.