Unicharm (OTCMKTS:UNICY) vs. RLX Technology (NYSE:RLX) Head to Head Review

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

Earnings & Valuation

This table compares Unicharm and RLX Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unicharm	$6.32 billion	1.70	$436.93 million	$0.12	25.67
RLX Technology	$566.11 million	5.73	$131.83 million	$0.09	23.28

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.

Volatility and Risk

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

Institutional and Insider Ownership

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Unicharm and RLX Technology, as reported by MarketBeat.

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

RLX Technology has a consensus price target of $2.50, indicating a potential upside of 19.33%. Given RLX Technology’s higher possible upside, analysts plainly believe RLX Technology is more favorable than Unicharm.

Dividends

Unicharm pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. RLX Technology pays an annual dividend of $0.10 per share and has a dividend yield of 4.8%. Unicharm pays out 25.0% of its earnings in the form of a dividend. 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.

About Unicharm

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.

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.