Atour Lifestyle (NASDAQ:ATAT – Get Free Report) and Madison Square Garden (NYSE:MSGS – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
Institutional & Insider Ownership
17.8% of Atour Lifestyle shares are owned by institutional investors. Comparatively, 68.9% of Madison Square Garden shares are owned by institutional investors. 19.1% of Madison Square Garden shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Atour Lifestyle has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Madison Square Garden has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atour Lifestyle | 0 | 0 | 8 | 1 | 3.11 |
| Madison Square Garden | 0 | 6 | 3 | 0 | 2.33 |
Atour Lifestyle currently has a consensus price target of $48.00, indicating a potential upside of 42.52%. Madison Square Garden has a consensus price target of $356.80, indicating a potential downside of 8.63%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, research analysts plainly believe Atour Lifestyle is more favorable than Madison Square Garden.
Valuation and Earnings
This table compares Atour Lifestyle and Madison Square Garden”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 | $10.70 billion | 0.44 | $231.80 million | $1.86 | 18.11 |
| Madison Square Garden | $1.04 billion | 9.05 | -$22.44 million | ($0.93) | -419.91 |
Atour Lifestyle has higher revenue and earnings than Madison Square Garden. Madison Square Garden is trading at a lower price-to-earnings ratio than Atour Lifestyle, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Atour Lifestyle and Madison Square Garden’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atour Lifestyle | 17.22% | 51.75% | 20.99% |
| Madison Square Garden | -2.07% | N/A | -1.39% |
Summary
Atour Lifestyle beats Madison Square Garden on 12 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 Madison Square Garden
Madison Square Garden Sports Corp. operates as a professional sports company in the United States. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. The company also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League. In addition, it operates professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.
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