Head-To-Head Analysis: Atour Lifestyle (NASDAQ:ATAT) & Six Flags Entertainment (NYSE:FUN)

Six Flags Entertainment (NYSE:FUN) and Atour Lifestyle (NASDAQ:ATAT) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Six Flags Entertainment and Atour Lifestyle”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Six Flags Entertainment	$3.10 billion	0.63	-$1.60 billion	($16.32)	-1.17
Atour Lifestyle	$1.40 billion	3.16	$231.80 million	$1.86	17.32

Atour Lifestyle has lower revenue, but higher earnings than Six Flags Entertainment. Six Flags 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.

Volatility & Risk

Six Flags Entertainment has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Atour Lifestyle has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Six Flags Entertainment	-52.76%	5.17%	0.51%
Atour Lifestyle	17.22%	51.75%	20.99%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Six Flags Entertainment and Atour Lifestyle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Six Flags Entertainment	1	5	9	0	2.53
Atour Lifestyle	0	0	8	1	3.11

Six Flags Entertainment currently has a consensus target price of $25.43, indicating a potential upside of 33.08%. Atour Lifestyle has a consensus target price of $48.00, indicating a potential upside of 49.02%. Given Atour Lifestyle’s stronger consensus rating and higher possible upside, analysts clearly believe Atour Lifestyle is more favorable than Six Flags Entertainment.

Insider and Institutional Ownership

64.7% of Six Flags Entertainment shares are owned by institutional investors. Comparatively, 17.8% of Atour Lifestyle shares are owned by institutional investors. 2.1% of Six Flags Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Atour Lifestyle beats Six Flags Entertainment on 11 of the 15 factors compared between the two stocks.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

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.