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

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

Volatility and Risk

Atour Lifestyle has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Earthworks Entertainment has a beta of -0.29, indicating that its stock price is 129% less volatile than the S&P 500.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atour Lifestyle	$6.67 billion	0.52	$103.82 million	$1.16	21.72
Earthworks Entertainment	N/A	N/A	N/A	N/A	N/A

Atour Lifestyle has higher revenue and earnings than Earthworks Entertainment.

Insider and Institutional Ownership

17.8% of Atour Lifestyle shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Atour Lifestyle and Earthworks Entertainment, as provided by MarketBeat.com.

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

Atour Lifestyle currently has a consensus target price of $28.03, indicating a potential upside of 11.24%. Given Atour Lifestyle’s stronger consensus rating and higher possible upside, research analysts clearly believe Atour Lifestyle is more favorable than Earthworks Entertainment.

Summary

Atour Lifestyle beats Earthworks Entertainment on 9 of the 9 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 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.