Critical Comparison: Atour Lifestyle (NASDAQ:ATAT) vs. Wynn Resorts (NASDAQ:WYNN)

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

Profitability

This table compares Atour Lifestyle and Wynn Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	N/A	N/A	N/A
Wynn Resorts	-11.28%	N/A	-4.13%

Institutional and Insider Ownership

71.0% of Wynn Resorts shares are held by institutional investors. 0.6% of Wynn Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Atour Lifestyle and Wynn Resorts’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$2.12 billion	1.48	$21.66 million	N/A	N/A
Wynn Resorts	$3.76 billion	3.25	-$423.86 million	($3.71)	-28.96

Atour Lifestyle has higher earnings, but lower revenue than Wynn Resorts.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Atour Lifestyle and Wynn Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	0	1	0	3.00
Wynn Resorts	0	2	6	0	2.75

Atour Lifestyle presently has a consensus target price of $22.00, suggesting a potential downside of 8.64%. Wynn Resorts has a consensus target price of $107.64, suggesting a potential upside of 0.18%. Given Wynn Resorts’ higher possible upside, analysts clearly believe Wynn Resorts is more favorable than Atour Lifestyle.

Summary

Wynn Resorts beats Atour Lifestyle on 6 of the 10 factors compared between the two stocks.

About Atour Lifestyle

(Get Rating)

Atour Lifestyle Holdings Limited, through its subsidiaries, operates a chain of hotels in China. The company operates a series of themed hotels, including music hotels, basketball hotels, and literary hotels catering to the various lifestyles across different age groups with varied interests. As of June 30, 2022, its hotel network covered 834 hotels spanning 151 cities in China, with a total of 96,969 hotel rooms, including 801 manachised hotels with a total of 91,911 manachised hotel rooms, as well as a pipeline of 343 hotels with a total of 37,795 rooms under development. The company also provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.

About Wynn Resorts

(Get Rating)

Wynn Resorts Ltd. is a holding company, which engages in the design, development, and operation of destination casino resorts. It operates through the following segments: Wynn Palace, Wynn Macau, Las Vegas Operations, Wynn Interactive and Encore Boston Harbor. The company was founded by Stephen Alan Wynn, Elaine P. Wynn, and Kazuo Okada in 2002 and is headquartered in Las Vegas, NV.