Universal (NYSE:UVV – Get Free Report) and RLX Technology (NYSE:RLX – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Universal and RLX Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal | 1 | 1 | 0 | 0 | 1.50 |
| RLX Technology | 0 | 2 | 0 | 0 | 2.00 |
RLX Technology has a consensus price target of $2.50, indicating a potential upside of 24.07%. Given RLX Technology’s stronger consensus rating and higher possible upside, analysts clearly believe RLX Technology is more favorable than Universal.
Insider & Institutional Ownership
Valuation & Earnings
This table compares Universal and RLX Technology”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal | $2.92 billion | 0.45 | $32.64 million | $1.29 | 40.77 |
| RLX Technology | $566.11 million | 5.51 | $131.83 million | $0.10 | 20.15 |
RLX Technology has lower revenue, but higher earnings than Universal. RLX Technology is trading at a lower price-to-earnings ratio than Universal, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Universal has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, RLX Technology has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.
Dividends
Universal pays an annual dividend of $3.32 per share and has a dividend yield of 6.3%. RLX Technology pays an annual dividend of $0.10 per share and has a dividend yield of 5.0%. Universal pays out 257.4% 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. Universal has increased its dividend for 56 consecutive years. Universal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Universal and RLX Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Universal | 1.12% | 4.43% | 2.20% |
| RLX Technology | 20.76% | 6.15% | 5.60% |
Summary
RLX Technology beats Universal on 10 of the 16 factors compared between the two stocks.
About Universal
Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.
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.
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