Analyzing Atour Lifestyle (NASDAQ:ATAT) and Inspirato (NASDAQ:ISPO)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspirato	$279.86 million	0.19	-$5.39 million	($0.87)	-4.87
Atour Lifestyle	$992.96 million	5.13	$174.72 million	$1.47	25.10

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

Insider and Institutional Ownership

39.5% of Inspirato shares are held by institutional investors. Comparatively, 17.8% of Atour Lifestyle shares are held by institutional investors. 50.0% of Inspirato shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Inspirato and Atour Lifestyle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	1	0	0	0	1.00
Atour Lifestyle	0	1	8	0	2.89

Atour Lifestyle has a consensus target price of $45.30, indicating a potential upside of 22.80%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, analysts plainly believe Atour Lifestyle is more favorable than Inspirato.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inspirato	-4.24%	N/A	-4.10%
Atour Lifestyle	16.21%	44.62%	17.81%

Risk and Volatility

Inspirato has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500. Comparatively, Atour Lifestyle has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Summary

Atour Lifestyle beats Inspirato on 12 of the 14 factors compared between the two stocks.

About Inspirato

Inspirato Incorporated, together with its subsidiaries, operates as a subscription-based luxury travel company. The company's portfolio includes luxury vacation homes, and accommodations at luxury hotels and resorts, as well as luxury safaris, cruises, custom-designed itineraries, and other experiences. It is involved in solving critical pain points for hospitality suppliers seeking to monetize their property with rental income. In addition, the company offers Inspirato Pass for member to book pass trips; Inspirato Club for members to book trips up to one year in advance Inspirato for Good, a platform designed to help nonprofit organizations accelerate funding results; Inspirato for Business, a business-to-business channel through which subscription and travel products are sold directly to businesses seeking to leverage luxury accommodations to recruit, retain, and reward their employees. The company was founded in 2010 and is headquartered in Denver, Colorado.

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.