Analyzing RLX Technology (NYSE:RLX) & Gilla (OTCMKTS:GLLA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gilla	N/A	N/A	N/A
RLX Technology	20.76%	6.15%	5.60%

Valuation and Earnings

This table compares Gilla and RLX Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gilla	N/A	N/A	N/A	N/A	N/A
RLX Technology	$566.11 million	5.43	$131.83 million	$0.10	19.85

RLX Technology has higher revenue and earnings than Gilla.

Risk and Volatility

Gilla has a beta of 13.33, meaning that its share price is 1,233% more volatile than the S&P 500. Comparatively, RLX Technology has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of current recommendations and price targets for Gilla and RLX Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilla	0	0	0	0	0.00
RLX Technology	0	2	0	0	2.00

RLX Technology has a consensus target price of $2.50, suggesting a potential upside of 25.94%. Given RLX Technology’s stronger consensus rating and higher possible upside, analysts clearly believe RLX Technology is more favorable than Gilla.

Summary

RLX Technology beats Gilla on 8 of the 9 factors compared between the two stocks.

About Gilla

Gilla Inc. engages in the manufacture, marketing, and distribution of generic and premium branded e-liquid used in vaporizers, electronic cigarettes, and other vaping hardware and accessories in Europe, Canada, and the United States. The company offers its products under the brand names of Spectrum Concentrates, Coil Glaze, Craft Vapes, Siren, The Drip Factory, Shake It, Surf Sauce, Ohana, Moshi, Crisp, Just Fruit, Vinto Vape, Vapor's Dozen, Enriched Vapor, and Crown E-liquid. Gilla Inc. sells its products through market channels, including vape shops, retail and wholesale distributors, convenience stores, and e-commerce Websites. The company is headquartered in Daytona Beach, Florida.

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.