Comparing RLX Technology (NYSE:RLX) and Interparfums (NASDAQ:IPAR)

RLX Technology (NYSE:RLX) and Interparfums (NASDAQ:IPAR) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLX Technology	$566.11 million	5.10	$131.83 million	$0.10	18.65
Interparfums	$1.49 billion	2.32	$168.39 million	$5.27	20.49

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for RLX Technology and Interparfums, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLX Technology	0	2	0	0	2.00
Interparfums	0	3	4	1	2.75

RLX Technology currently has a consensus target price of $2.50, indicating a potential upside of 34.05%. Interparfums has a consensus target price of $106.00, indicating a potential downside of 1.82%. Given RLX Technology’s higher possible upside, analysts plainly believe RLX Technology is more favorable than Interparfums.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RLX Technology	20.76%	6.15%	5.60%
Interparfums	11.32%	15.47%	10.82%

Volatility & Risk

RLX Technology has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Interparfums has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

22.7% of RLX Technology shares are owned by institutional investors. Comparatively, 55.6% of Interparfums shares are owned by institutional investors. 53.4% of RLX Technology shares are owned by insiders. Comparatively, 43.7% of Interparfums shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

RLX Technology pays an annual dividend of $0.10 per share and has a dividend yield of 5.4%. Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 3.0%. RLX Technology pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Interparfums pays out 60.7% of its earnings in the form of a dividend. Interparfums has increased its dividend for 4 consecutive years.

Summary

Interparfums beats RLX Technology on 13 of the 18 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 Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.