Atour Lifestyle (NASDAQ:ATAT) vs. Earthworks Entertainment (OTCMKTS:EWKS) Financial Analysis

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

Institutional and Insider Ownership

17.8% of Atour Lifestyle shares are owned 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$6.67 billion	0.53	$103.82 million	$1.16	22.28
Earthworks Entertainment	N/A	N/A	N/A	N/A	N/A

Atour Lifestyle has higher revenue and earnings than Earthworks Entertainment.

Analyst Recommendations

This is a breakdown of current recommendations for Atour Lifestyle and Earthworks Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	0	3	0	3.00
Earthworks Entertainment	0	0	0	0	0.00

Atour Lifestyle presently has a consensus price target of $28.03, suggesting a potential upside of 8.45%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, analysts plainly believe Atour Lifestyle is more favorable than Earthworks Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	17.43%	48.26%	16.71%
Earthworks Entertainment	N/A	N/A	N/A

Summary

Atour Lifestyle beats Earthworks Entertainment on 8 of the 8 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 Earthworks Entertainment

Earthworks Entertainment, Inc., a development stage company, engages in the creation, co-production, marketing, and distribution of children’s and family-oriented entertainment properties. It markets its properties through multiplatform Earthworks Entertainment, Inc., a development stage company, engages in the creation, co-production, marketing, and distribution of children’s and family-oriented entertainment properties. It markets its properties through multiplatform market categories, including television, home video, merchandise licensing, electronic and video games, and book and music publishing. The company also forms teaming agreements with outside companies for the co-operative marketing of entertainment properties. Earthworks Entertainment owns marketing rights to nine family-oriented entertainment properties, which include Z-Force, an action adventure property; Nine Dog Christmas, a music-driven holiday property; Big Dogs, the big attitude character brand; Little Suzy’s Zoo, the preschool and baby character brand; Corneil & Bernie; The Plonsters, the clay animation television series; The Little Reindeer, an animated Christmas special; 64 Zoo Lane, the animated children’s series; and Kiddo the Super Truck, a theatrical quality computer animated property. The company was incorporated in 1986 and is based in Addison, Texas.