Critical Analysis: Atour Lifestyle (NASDAQ:ATAT) and Inspirato (NASDAQ:ISPO)

Atour Lifestyle (NASDAQ:ATAT) and Inspirato (NASDAQ:ISPO) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Earnings and Valuation

This table compares Atour Lifestyle and Inspirato”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$992.96 million	5.87	$174.72 million	$1.47	28.69
Inspirato	$279.86 million	0.19	-$5.39 million	($0.87)	-4.78

Atour Lifestyle has higher revenue and earnings than Inspirato. Inspirato is trading at a lower price-to-earnings ratio than Atour Lifestyle, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Atour Lifestyle has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Inspirato has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Atour Lifestyle and Inspirato, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	1	7	0	2.88
Inspirato	1	0	0	0	1.00

Atour Lifestyle currently has a consensus target price of $44.68, indicating a potential upside of 5.95%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, equities analysts clearly believe Atour Lifestyle is more favorable than Inspirato.

Institutional and Insider Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. Comparatively, 39.5% of Inspirato shares are owned by institutional investors. 50.0% of Inspirato shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Atour Lifestyle and Inspirato’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	16.21%	44.62%	17.81%
Inspirato	-4.24%	N/A	-4.10%

Summary

Atour Lifestyle beats Inspirato on 12 of the 14 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 Inspirato

Inspirato Incorporated, together with its subsidiaries, operates as a subscription-based luxury travel company. The company's portfolio includes luxury vacation homes, and accommodations at luxury hotels and resorts, as well as luxury safaris, cruises, custom-designed itineraries, and other experiences. It is involved in solving critical pain points for hospitality suppliers seeking to monetize their property with rental income. In addition, the company offers Inspirato Pass for member to book pass trips; Inspirato Club for members to book trips up to one year in advance Inspirato for Good, a platform designed to help nonprofit organizations accelerate funding results; Inspirato for Business, a business-to-business channel through which subscription and travel products are sold directly to businesses seeking to leverage luxury accommodations to recruit, retain, and reward their employees. The company was founded in 2010 and is headquartered in Denver, Colorado.