Head-To-Head Review: Inspirato (NASDAQ:ISPO) and Atour Lifestyle (NASDAQ:ATAT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atour Lifestyle	16.21%	44.62%	17.81%
Inspirato	-4.24%	N/A	-4.10%

Volatility & Risk

Atour Lifestyle has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.

Valuation and Earnings

This table compares Atour Lifestyle and Inspirato”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$992.96 million	5.13	$174.72 million	$1.47	25.10
Inspirato	$279.86 million	0.19	-$5.39 million	($0.87)	-4.87

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Atour Lifestyle and Inspirato, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	1	8	0	2.89
Inspirato	1	0	0	0	1.00

Atour Lifestyle presently has a consensus price target of $45.30, suggesting a potential upside of 22.80%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, equities analysts plainly believe Atour Lifestyle is more favorable than Inspirato.

Institutional and Insider Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. Comparatively, 39.5% of Inspirato shares are owned by institutional investors. 50.0% of Inspirato shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Atour Lifestyle beats Inspirato on 12 of the 14 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 Inspirato

Inspirato Incorporated, together with its subsidiaries, operates as a subscription-based luxury travel company. The company's portfolio includes luxury vacation homes, and accommodations at luxury hotels and resorts, as well as luxury safaris, cruises, custom-designed itineraries, and other experiences. It is involved in solving critical pain points for hospitality suppliers seeking to monetize their property with rental income. In addition, the company offers Inspirato Pass for member to book pass trips; Inspirato Club for members to book trips up to one year in advance Inspirato for Good, a platform designed to help nonprofit organizations accelerate funding results; Inspirato for Business, a business-to-business channel through which subscription and travel products are sold directly to businesses seeking to leverage luxury accommodations to recruit, retain, and reward their employees. The company was founded in 2010 and is headquartered in Denver, Colorado.