Comparing Candlewood Hotel (OTCMKTS:CNDL) and Atour Lifestyle (NASDAQ:ATAT)

Atour Lifestyle (NASDAQ:ATAT) and Candlewood Hotel (OTCMKTS:CNDL) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Atour Lifestyle and Candlewood Hotel”s gross 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	0.58	$103.82 million	$0.97	26.16
Candlewood Hotel	N/A	N/A	N/A	N/A	N/A

Atour Lifestyle has higher revenue and earnings than Candlewood Hotel.

Insider & Institutional Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. 30.9% of Candlewood Hotel 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.

Profitability

This table compares Atour Lifestyle and Candlewood Hotel’s 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%
Candlewood Hotel	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Atour Lifestyle and Candlewood Hotel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	0	2	0	3.00
Candlewood Hotel	0	0	0	0	N/A

Atour Lifestyle currently has a consensus target price of $24.85, suggesting a potential downside of 2.09%. Given Atour Lifestyle’s higher probable upside, equities analysts clearly believe Atour Lifestyle is more favorable than Candlewood Hotel.

Summary

Atour Lifestyle beats Candlewood Hotel on 7 of the 8 factors compared between the two stocks.

About Atour Lifestyle

Atour Lifestyle Holdings Limited, through its subsidiaries, provides lifestyle brands around hotel offerings in the People's Republic of China. The company operates a series of themed hotels, including music hotels, basketball hotels, and literary hotels catering to the various lifestyles across different age groups with varied interests. The company also provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.

About Candlewood Hotel

Candlewood Hotel Company, Inc. operates, franchises, owns, and manages business-travel hotels. It offers studios, one-bedroom suites, and accommodations to mid-market business and personal travelers. Each hotel is equipped with an exercise room, a complimentary guest laundry facility, a dry cleaning drop, free local calls and long distance calls, and self-service packaged foods and beverages; and a free First Night Kit' complete with items, such as coffee and popcorn. In addition, studio and one-bedroom suite offers amenities, such as two telephones, with two incoming direct dial lines and computer connections; an executive desk with a quad-outlet to accommodate office equipment needs, an executive chair, a bulletin board, a guest chair, and personalized remote accessible telephone mail; a television, video cassette player, and compact disc player; an iron and ironing board; and a kitchen. In addition, it operates recreational facilities, such as swimming pool and fitness center; a kitchen in every suite; a complimentary cooked to order' breakfast; and a hospitality area for breakfast and socializing. The company was founded in 1995 and is based in Wichita, Kansas.