Analyzing Atour Lifestyle (NASDAQ:ATAT) and LuxUrban Hotels (NASDAQ:LUXHP)

Atour Lifestyle (NASDAQ:ATAT) and LuxUrban Hotels (NASDAQ:LUXHP) are both consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Atour Lifestyle and LuxUrban Hotels, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	0	2	0	3.00
LuxUrban Hotels	0	0	0	0	N/A

Atour Lifestyle presently has a consensus target price of $24.85, indicating a potential downside of 10.80%. Given Atour Lifestyle’s higher possible upside, analysts plainly believe Atour Lifestyle is more favorable than LuxUrban Hotels.

Institutional & Insider Ownership

17.8% of Atour Lifestyle shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Atour Lifestyle and LuxUrban Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	17.16%	47.07%	15.65%
LuxUrban Hotels	N/A	N/A	N/A

Dividends

Atour Lifestyle pays an annual dividend of $0.42 per share and has a dividend yield of 1.5%. LuxUrban Hotels pays an annual dividend of $3.25 per share and has a dividend yield of 21.8%. Atour Lifestyle pays out 43.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Atour Lifestyle and LuxUrban Hotels”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$6.06 billion	0.63	$103.82 million	$0.97	28.72
LuxUrban Hotels	$90.87 million	N/A	N/A	N/A	N/A

Atour Lifestyle has higher revenue and earnings than LuxUrban Hotels.

Summary

Atour Lifestyle beats LuxUrban Hotels on 7 of the 9 factors compared between the two stocks.

About Atour Lifestyle

Atour Lifestyle Holdings Limited, through its subsidiaries, develops lifestyle brands around hotel offerings in the People’s Republic of China. The company provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. It also offers retail management service; investment management service; financial information service management; property management services; and software and technology services, as well as operates travel agency. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.

About LuxUrban Hotels

LuxUrban Hotels Inc. engages in the leasing of entire existing hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. LuxUrban Hotels Inc. was incorporated in 2017 and is headquartered in Miami, Florida.