Head to Head Review: BJ’s Restaurants (NASDAQ:BJRI) and Atour Lifestyle (NASDAQ:ATAT)

BJ’s Restaurants (NASDAQ:BJRI) 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 earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a summary of current ratings and price targets for BJ’s Restaurants and Atour Lifestyle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Restaurants	2	4	5	0	2.27
Atour Lifestyle	0	1	8	0	2.89

BJ’s Restaurants currently has a consensus target price of $56.50, suggesting a potential downside of 10.71%. Atour Lifestyle has a consensus target price of $46.62, suggesting a potential upside of 42.73%. Given Atour Lifestyle’s stronger consensus rating and higher possible upside, analysts plainly believe Atour Lifestyle is more favorable than BJ’s Restaurants.

Risk & Volatility

BJ’s Restaurants has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Atour Lifestyle has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Valuation and Earnings

This table compares BJ’s Restaurants 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
BJ’s Restaurants	$1.40 billion	0.96	$48.81 million	$1.87	33.84
Atour Lifestyle	$1.40 billion	3.21	$231.80 million	$2.03	16.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BJ’s Restaurants	2.86%	12.93%	4.79%
Atour Lifestyle	16.75%	55.00%	22.21%

Institutional & Insider Ownership

100.0% of BJ’s Restaurants shares are held by institutional investors. Comparatively, 17.8% of Atour Lifestyle shares are held by institutional investors. 2.4% of BJ’s Restaurants shares are held by 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.

Summary

Atour Lifestyle beats BJ’s Restaurants on 10 of the 14 factors compared between the two stocks.

About BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.

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.