Atour Lifestyle (NASDAQ:ATAT – Get Free Report) and Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Institutional & Insider Ownership
17.8% of Atour Lifestyle shares are owned by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are owned by institutional investors. 84.2% of Lucky Strike Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Atour Lifestyle and Lucky Strike Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atour Lifestyle | $1.40 billion | 3.20 | $231.80 million | $1.86 | 17.53 |
| Lucky Strike Entertainment | $1.20 billion | 0.83 | -$10.02 million | ($0.62) | -11.78 |
Atour Lifestyle has higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Atour Lifestyle, indicating that it is currently the more affordable of the two stocks.
Dividends
Atour Lifestyle pays an annual dividend of $0.51 per share and has a dividend yield of 1.6%. Lucky Strike Entertainment pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. Atour Lifestyle pays out 27.4% of its earnings in the form of a dividend. Lucky Strike Entertainment pays out -38.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lucky Strike Entertainment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Atour Lifestyle and Lucky Strike Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atour Lifestyle | 0 | 1 | 8 | 0 | 2.89 |
| Lucky Strike Entertainment | 2 | 7 | 3 | 0 | 2.08 |
Atour Lifestyle presently has a consensus target price of $48.00, indicating a potential upside of 47.24%. Lucky Strike Entertainment has a consensus target price of $8.69, indicating a potential upside of 18.93%. Given Atour Lifestyle’s stronger consensus rating and higher possible upside, equities analysts clearly believe Atour Lifestyle is more favorable than Lucky Strike Entertainment.
Profitability
This table compares Atour Lifestyle and Lucky Strike Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atour Lifestyle | 17.22% | 51.75% | 20.99% |
| Lucky Strike Entertainment | -6.79% | N/A | -2.61% |
Volatility & Risk
Atour Lifestyle has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
Summary
Atour Lifestyle beats Lucky Strike Entertainment on 12 of the 16 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 Lucky Strike Entertainment
Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.
Receive News & Ratings for Atour Lifestyle Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Atour Lifestyle and related companies with MarketBeat.com's FREE daily email newsletter.
