Critical Comparison: Gilla (OTCMKTS:GLLA) and RLX Technology (NYSE:RLX)

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

Insider and Institutional 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, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLX Technology	$566.11 million	4.86	$131.83 million	$0.10	17.75
Gilla	N/A	N/A	N/A	N/A	N/A

RLX Technology has higher revenue and earnings than Gilla.

Analyst Ratings

This is a summary of recent ratings and price targets for RLX Technology and Gilla, as provided by MarketBeat.

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

RLX Technology currently has a consensus target price of $2.50, indicating a potential upside of 40.85%. Given RLX Technology’s stronger consensus rating and higher probable upside, equities research analysts plainly believe RLX Technology is more favorable than Gilla.

Risk & Volatility

RLX Technology has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Gilla has a beta of 13.33, indicating that its share price is 1,233% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RLX Technology	20.24%	6.20%	5.65%
Gilla	N/A	N/A	N/A

Summary

RLX Technology beats Gilla on 8 of the 9 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 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.