BJ’s Restaurants (NASDAQ:BJRI) and Atour Lifestyle (NASDAQ:ATAT) Financial Survey

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

Analyst Recommendations

This is a summary of current recommendations for Atour Lifestyle and BJ’s Restaurants, as provided by MarketBeat.com.

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

Atour Lifestyle presently has a consensus price target of $46.62, indicating a potential upside of 47.94%. BJ’s Restaurants has a consensus price target of $56.50, indicating a potential downside of 0.02%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, analysts clearly believe Atour Lifestyle is more favorable than BJ’s Restaurants.

Volatility & Risk

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

Profitability

This table compares Atour Lifestyle and BJ’s Restaurants’ 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%
BJ’s Restaurants	2.86%	12.93%	4.79%

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Atour Lifestyle and BJ’s Restaurants”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$1.40 billion	3.09	$231.80 million	$2.03	15.52
BJ’s Restaurants	$1.40 billion	0.86	$48.81 million	$1.87	30.22

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.

Summary

Atour Lifestyle beats BJ’s Restaurants on 10 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 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.