Atour Lifestyle (NASDAQ:ATAT – Get Free Report) and Papa John’s International (NASDAQ:PZZA – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations and price targets for Atour Lifestyle and Papa John’s International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atour Lifestyle | 0 | 2 | 6 | 0 | 2.75 |
| Papa John’s International | 3 | 6 | 0 | 0 | 1.67 |
Atour Lifestyle currently has a consensus target price of $48.00, suggesting a potential upside of 48.65%. Papa John’s International has a consensus target price of $32.00, suggesting a potential upside of 63.27%. Given Papa John’s International’s higher possible upside, analysts plainly believe Papa John’s International is more favorable than Atour Lifestyle.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Atour Lifestyle | 16.75% | 55.00% | 22.21% |
| Papa John’s International | 1.34% | -10.98% | 5.68% |
Risk & Volatility
Atour Lifestyle has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
Institutional & Insider Ownership
17.8% of Atour Lifestyle shares are held by institutional investors. 1.8% of Papa John’s International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Atour Lifestyle and Papa John’s International”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 | 3.17 | $231.80 million | $2.03 | 15.91 |
| Papa John’s International | $2.05 billion | 0.31 | $30.53 million | $0.79 | 24.81 |
Atour Lifestyle has higher earnings, but lower revenue than Papa John’s International. Atour Lifestyle is trading at a lower price-to-earnings ratio than Papa John’s International, indicating that it is currently the more affordable of the two stocks.
Dividends
Atour Lifestyle pays an annual dividend of $0.51 per share and has a dividend yield of 1.6%. Papa John’s International pays an annual dividend of $1.84 per share and has a dividend yield of 9.4%. Atour Lifestyle pays out 25.1% of its earnings in the form of a dividend. Papa John’s International pays out 232.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Papa John’s International has increased its dividend for 4 consecutive years. Papa John’s International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Atour Lifestyle beats Papa John’s International on 10 of the 17 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 Papa John’s International
Papa John’s International, Inc. engages in the operation and franchise of pizza delivery and carryout restaurants. It operates through the following segments: Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, International Operations, and All Others. The Domestic Company-Owned Restaurants segment consists of retail sales of pizza and side items, breadsticks, cheese sticks, chicken poppers and wings, dessert items, and canned and bottled beverages. The North America Franchising segment involves the offering of sales and support activities, development rights, and collection of royalties from franchisees located in the United States and Canada. The North America Commissaries segment includes the eleven full-service regional dough production and distribution and quality control centers. The International Operations segment represents all restaurant operations outside of the United States and Canada. The All Others segment focuses on franchise contributions to marketing funds and sale, company-owned and franchised restaurants, information systems and related services used in restaurant operations, point-of-sale system, online and other technology-based ordering platforms, printing, and promotional items. The company was founded by John H. Schnatter in 1984 and is headquartered in Louisville, KY.
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