Head to Head Review: RLX Technology (NYSE:RLX) and Traeger (NYSE:COOK)

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

Profitability

This table compares RLX Technology and Traeger’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%
Traeger	-6.02%	-5.67%	-1.93%

Analyst Ratings

This is a summary of recent ratings and recommmendations for RLX Technology and Traeger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	2	0	0	2.00
Traeger	2	5	1	0	1.88

RLX Technology currently has a consensus price target of $2.25, indicating a potential downside of 5.06%. Traeger has a consensus price target of $2.13, indicating a potential upside of 96.94%. Given Traeger’s higher probable upside, analysts clearly believe Traeger is more favorable than RLX Technology.

Risk & Volatility

RLX Technology has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Institutional & Insider Ownership

22.7% of RLX Technology shares are held by institutional investors. Comparatively, 46.8% of Traeger shares are held by institutional investors. 53.4% of RLX Technology shares are held by company insiders. Comparatively, 14.7% of Traeger shares are held by company 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.

Valuation & Earnings

This table compares RLX Technology and Traeger”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLX Technology	$376.55 million	9.89	$75.60 million	$0.07	33.86
Traeger	$604.07 million	0.24	-$34.01 million	($0.27)	-4.00

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

Summary

RLX Technology beats Traeger on 9 of the 14 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 Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.