Atour Lifestyle (NASDAQ:ATAT) versus Bloomin’ Brands (NASDAQ:BLMN) Critical Contrast

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

Volatility & Risk

Bloomin’ Brands has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Atour Lifestyle has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Bloomin’ Brands and Atour Lifestyle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bloomin’ Brands	0	11	0	0	2.00
Atour Lifestyle	0	1	8	0	2.89

Bloomin’ Brands presently has a consensus price target of $11.10, suggesting a potential upside of 8.02%. Atour Lifestyle has a consensus price target of $46.62, suggesting a potential upside of 30.47%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, analysts plainly believe Atour Lifestyle is more favorable than Bloomin’ Brands.

Valuation and Earnings

This table compares Bloomin’ Brands and Atour Lifestyle”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bloomin’ Brands	$3.96 billion	0.22	$8.24 million	$0.82	12.54
Atour Lifestyle	$1.40 billion	3.51	$231.80 million	$2.03	17.60

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bloomin’ Brands	0.70%	28.95%	3.47%
Atour Lifestyle	16.75%	55.00%	22.21%

Institutional and Insider Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. 1.2% of Bloomin’ Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Atour Lifestyle beats Bloomin’ Brands on 11 of the 14 factors compared between the two stocks.

About Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.

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.