Atour Lifestyle (NASDAQ:ATAT) versus Rush Street Interactive (NYSE:RSI) Head to Head Survey

Atour Lifestyle (NASDAQ:ATAT) and Rush Street Interactive (NYSE:RSI) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares Atour Lifestyle and Rush Street Interactive”s revenue, earnings per share (EPS) 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
Rush Street Interactive	$1.13 billion	3.24	$33.31 million	$0.29	54.70

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

Institutional and Insider Ownership

17.8% of Atour Lifestyle shares are held by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are held by institutional investors. 52.9% of Rush Street Interactive shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Atour Lifestyle has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.

Profitability

This table compares Atour Lifestyle and Rush Street Interactive’s 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%
Rush Street Interactive	2.33%	18.88%	8.57%

Analyst Recommendations

This is a breakdown of current ratings for Atour Lifestyle and Rush Street Interactive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atour Lifestyle	0	1	8	0	2.89
Rush Street Interactive	0	4	11	1	2.81

Atour Lifestyle presently has a consensus target price of $46.62, indicating a potential upside of 47.94%. Rush Street Interactive has a consensus target price of $31.67, indicating a potential upside of 99.64%. Given Rush Street Interactive’s higher possible upside, analysts clearly believe Rush Street Interactive is more favorable than Atour Lifestyle.

Summary

Rush Street Interactive beats Atour Lifestyle on 8 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 Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.