Financial Contrast: Atour Lifestyle (NASDAQ:ATAT) and Airbnb (NASDAQ:ABNB)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	1	8	0	2.89
Airbnb	1	17	14	1	2.45

Atour Lifestyle currently has a consensus target price of $48.00, suggesting a potential upside of 31.26%. Airbnb has a consensus target price of $149.40, suggesting a potential upside of 15.67%. Given Atour Lifestyle’s stronger consensus rating and higher possible upside, equities analysts clearly believe Atour Lifestyle is more favorable than Airbnb.

Earnings and Valuation

This table compares Atour Lifestyle and Airbnb”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$9.79 billion	0.52	$231.80 million	$1.62	22.57
Airbnb	$12.24 billion	6.42	$2.51 billion	$4.04	31.97

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

Risk and Volatility

Atour Lifestyle has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	16.58%	46.96%	18.90%
Airbnb	20.51%	30.88%	10.32%

Institutional and Insider Ownership

17.8% of Atour Lifestyle shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 27.9% of Airbnb shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Airbnb beats Atour Lifestyle on 11 of the 15 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 Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.