Financial Review: Atour Lifestyle (NASDAQ:ATAT) and Earthworks Entertainment (OTCMKTS:EWKS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Earthworks Entertainment	N/A	N/A	N/A
Atour Lifestyle	17.43%	48.26%	16.71%

Valuation & Earnings

This table compares Earthworks Entertainment and Atour Lifestyle”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Earthworks Entertainment	N/A	N/A	N/A	N/A	N/A
Atour Lifestyle	$6.67 billion	0.53	$103.82 million	$1.16	22.28

Atour Lifestyle has higher revenue and earnings than Earthworks Entertainment.

Institutional and Insider Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Earthworks Entertainment and Atour Lifestyle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Earthworks Entertainment	0	0	0	0	0.00
Atour Lifestyle	0	0	3	0	3.00

Atour Lifestyle has a consensus price target of $28.03, indicating a potential upside of 8.45%. Given Atour Lifestyle’s stronger consensus rating and higher probable upside, analysts clearly believe Atour Lifestyle is more favorable than Earthworks Entertainment.

Summary

Atour Lifestyle beats Earthworks Entertainment on 8 of the 8 factors compared between the two stocks.

About Earthworks Entertainment

Earthworks Entertainment, Inc., a development stage company, engages in the creation, co-production, marketing, and distribution of children’s and family-oriented entertainment properties. It markets its properties through multiplatform Earthworks Entertainment, Inc., a development stage company, engages in the creation, co-production, marketing, and distribution of children’s and family-oriented entertainment properties. It markets its properties through multiplatform market categories, including television, home video, merchandise licensing, electronic and video games, and book and music publishing. The company also forms teaming agreements with outside companies for the co-operative marketing of entertainment properties. Earthworks Entertainment owns marketing rights to nine family-oriented entertainment properties, which include Z-Force, an action adventure property; Nine Dog Christmas, a music-driven holiday property; Big Dogs, the big attitude character brand; Little Suzy’s Zoo, the preschool and baby character brand; Corneil & Bernie; The Plonsters, the clay animation television series; The Little Reindeer, an animated Christmas special; 64 Zoo Lane, the animated children’s series; and Kiddo the Super Truck, a theatrical quality computer animated property. The company was incorporated in 1986 and is based in Addison, Texas.

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.