Financial Review: Atour Lifestyle (NASDAQ:ATAT) and Candlewood Hotel (OTCMKTS:CNDL)

Candlewood Hotel (OTCMKTS:CNDL) and Atour Lifestyle (NASDAQ:ATAT) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Candlewood Hotel	N/A	N/A	N/A	N/A	N/A
Atour Lifestyle	$6.06 billion	0.63	$103.82 million	$0.97	28.75

Atour Lifestyle has higher revenue and earnings than Candlewood Hotel.

Insider and Institutional Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. 30.9% of Candlewood Hotel shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Candlewood Hotel and Atour Lifestyle, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Candlewood Hotel	0	0	0	0	N/A
Atour Lifestyle	0	0	2	0	3.00

Atour Lifestyle has a consensus target price of $24.85, indicating a potential downside of 10.90%. Given Atour Lifestyle’s higher probable upside, analysts plainly believe Atour Lifestyle is more favorable than Candlewood Hotel.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Candlewood Hotel	N/A	N/A	N/A
Atour Lifestyle	17.16%	47.07%	15.65%

Summary

Atour Lifestyle beats Candlewood Hotel on 7 of the 8 factors compared between the two stocks.

About Candlewood Hotel

Candlewood Hotel Company, Inc. operates, franchises, owns, and manages business-travel hotels. It offers studios, one-bedroom suites, and accommodations to mid-market business and personal travelers. Each hotel is equipped with an exercise room, a complimentary guest laundry facility, a dry cleaning drop, free local calls and long distance calls, and self-service packaged foods and beverages; and a free First Night Kit' complete with items, such as coffee and popcorn. In addition, studio and one-bedroom suite offers amenities, such as two telephones, with two incoming direct dial lines and computer connections; an executive desk with a quad-outlet to accommodate office equipment needs, an executive chair, a bulletin board, a guest chair, and personalized remote accessible telephone mail; a television, video cassette player, and compact disc player; an iron and ironing board; and a kitchen. In addition, it operates recreational facilities, such as swimming pool and fitness center; a kitchen in every suite; a complimentary cooked to order' breakfast; and a hospitality area for breakfast and socializing. The company was founded in 1995 and is based in Wichita, Kansas.

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.