Contrasting Atour Lifestyle (NASDAQ:ATAT) & H.I.S. (OTCMKTS:HISJF)

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

Volatility and Risk

Atour Lifestyle has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, H.I.S. has a beta of -0.24, suggesting that its stock price is 124% less volatile than the S&P 500.

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of current ratings and target prices for Atour Lifestyle and H.I.S., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	1	8	0	2.89
H.I.S.	0	0	0	0	0.00

Atour Lifestyle presently has a consensus target price of $48.00, suggesting a potential upside of 26.02%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Atour Lifestyle is more favorable than H.I.S..

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	16.58%	46.96%	18.90%
H.I.S.	1.17%	13.38%	2.20%

Earnings & Valuation

This table compares Atour Lifestyle and H.I.S.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$1.40 billion	3.76	$231.80 million	$1.62	23.51
H.I.S.	$2.50 billion	0.39	$31.62 million	$0.40	32.73

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

Summary

Atour Lifestyle beats H.I.S. on 11 of the 13 factors compared between the two stocks.

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.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.