Financial Comparison: Atour Lifestyle (NASDAQ:ATAT) and Rush Street Interactive (NYSE:RSI)

Atour Lifestyle (NASDAQ:ATAT) and Rush Street Interactive (NYSE:RSI) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Institutional & Insider Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 52.9% of Rush Street Interactive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	16.75%	55.00%	22.21%
Rush Street Interactive	2.33%	18.88%	8.57%

Volatility and Risk

Atour Lifestyle has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.

Valuation & Earnings

This table compares Atour Lifestyle and Rush Street Interactive”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$11.72 billion	0.39	$231.80 million	$2.03	16.33
Rush Street Interactive	$1.13 billion	3.44	$33.31 million	$0.29	58.05

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

Analyst Ratings

This is a summary of current recommendations for Atour Lifestyle and Rush Street Interactive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	1	8	0	2.89
Rush Street Interactive	0	4	10	1	2.80

Atour Lifestyle currently has a consensus target price of $46.62, indicating a potential upside of 40.58%. Rush Street Interactive has a consensus target price of $32.36, indicating a potential upside of 92.25%. Given Rush Street Interactive’s higher possible upside, analysts plainly believe Rush Street Interactive is more favorable than Atour Lifestyle.

Summary

Rush Street Interactive beats Atour Lifestyle on 8 of the 15 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 Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.