RLX Technology (NYSE:RLX) & Altria Group (NYSE:MO) Head to Head Comparison

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

Dividends

Altria Group pays an annual dividend of $4.44 per share and has a dividend yield of 5.7%. RLX Technology pays an annual dividend of $0.10 per share and has a dividend yield of 6.5%. Altria Group pays out 91.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Altria Group has raised its dividend for 56 consecutive years.

Volatility and Risk

Altria Group has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, RLX Technology has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Insider and Institutional Ownership

57.4% of Altria Group shares are held by institutional investors. Comparatively, 22.7% of RLX Technology shares are held by institutional investors. 0.1% of Altria Group shares are held by insiders. Comparatively, 53.4% of RLX Technology shares are held by 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 Altria Group and RLX Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Altria Group	34.51%	-330.66%	27.43%
RLX Technology	20.24%	6.20%	5.65%

Analyst Ratings

This is a summary of current recommendations and price targets for Altria Group and RLX Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altria Group	2	6	5	0	2.23
RLX Technology	0	2	0	0	2.00

Altria Group currently has a consensus target price of $71.67, indicating a potential downside of 7.37%. RLX Technology has a consensus target price of $2.50, indicating a potential upside of 61.81%. Given RLX Technology’s higher possible upside, analysts plainly believe RLX Technology is more favorable than Altria Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altria Group	$20.63 billion	6.24	$6.95 billion	$4.84	15.99
RLX Technology	$4.50 billion	0.53	$131.83 million	$0.10	15.45

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

Summary

Altria Group beats RLX Technology on 12 of the 17 factors compared between the two stocks.

About Altria Group

Altria Group, Inc. is a U.S.-based tobacco and nicotine company whose businesses focus primarily on the domestic market. Its products include cigarettes, smokeless tobacco, cigars, oral nicotine products and e-vapor products. Altria’s portfolio includes Marlboro cigarettes, made by Philip Morris USA; Copenhagen and Skoal smokeless tobacco products, made by U.S. Smokeless Tobacco Company; and products from John Middleton and Helix Innovations. The company also owns NJOY, an e-vapor brand. The company was established as Philip Morris Companies Inc. and adopted the Altria name in 2003.

About RLX Technology

RLX Technology is a China-based company that develops, manufactures and sells electronic vapor products under the RELX brand. Founded in 2018 by Kate Wang, the company focuses on branded e-cigarettes and related products. Its offerings include electronic vapor devices, prefilled pods and accessories. RLX also conducts product research and development and supports the manufacturing and distribution of its products. The company serves customers in China and international markets through retail and distribution channels.