Financial Analysis: Atour Lifestyle (NASDAQ:ATAT) and Lucky Strike Entertainment (NYSE:LUCK)

Atour Lifestyle (NASDAQ:ATATGet Free Report) and Lucky Strike Entertainment (NYSE:LUCKGet Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Risk and Volatility

Atour Lifestyle has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Insider & Institutional 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Atour Lifestyle and Lucky Strike Entertainment”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atour Lifestyle $1.40 billion 3.16 $231.80 million $1.86 17.32
Lucky Strike Entertainment $1.20 billion 0.83 -$10.02 million ($0.62) -11.76

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.

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%

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 Ratings

This is a summary of current ratings and price targets for Atour Lifestyle and Lucky Strike Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atour Lifestyle 0 0 8 1 3.11
Lucky Strike Entertainment 2 7 3 0 2.08

Atour Lifestyle currently has a consensus target price of $48.00, suggesting a potential upside of 49.02%. Lucky Strike Entertainment has a consensus target price of $8.69, suggesting a potential upside of 19.12%. Given Atour Lifestyle’s stronger consensus rating and higher possible upside, equities analysts plainly believe Atour Lifestyle is more favorable than Lucky Strike Entertainment.

Summary

Atour Lifestyle beats Lucky Strike Entertainment on 13 of the 17 factors compared between the two stocks.

About Atour Lifestyle

(Get Free Report)

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

(Get Free Report)

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.

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