WallStSmart

Atour Lifestyle Holdings Limited American Depositary Shares (ATAT)vsHuazhu Group Ltd (HTHT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 127% more annual revenue ($26.60B vs $11.72B). HTHT leads profitability with a 18.9% profit margin vs 16.8%. ATAT trades at a lower P/E of 15.6x. HTHT earns a higher WallStSmart Score of 74/100 (B).

ATAT

Strong Buy

74

out of 100

Grade: B

Growth: 10.0Profit: 9.0Value: 7.7Quality: 7.5
Piotroski: 5/9Altman Z: 3.11

HTHT

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 6.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATATUndervalued (+42.0%)

Margin of Safety

+42.0%

Fair Value

$67.62

Current Price

$33.21

$34.41 discount

UndervaluedFair: $67.62Overvalued

Intrinsic value data unavailable for HTHT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATAT6 strengths · Avg: 9.0/10
Return on EquityProfitability
50.1%10/10

Every $100 of equity generates 50 in profit

Revenue GrowthGrowth
41.4%10/10

Revenue surging 41.4% year-over-year

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

EPS GrowthGrowth
31.7%8/10

Earnings expanding 31.7% YoY

HTHT4 strengths · Avg: 9.5/10
PEG RatioValuation
0.2710/10

Growing faster than its price suggests

Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
31.1%10/10

Strong operational efficiency at 31.1%

Free Cash FlowQuality
$3.21B8/10

Generating 3.2B in free cash flow

Areas to Watch

ATAT1 concerns · Avg: 4.0/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

HTHT4 concerns · Avg: 2.8/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

Altman Z-ScoreHealth
0.952/10

Distress zone — elevated risk

Debt/EquityHealth
2.431/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ATAT

The strongest argument for ATAT centers on Return on Equity, Revenue Growth, Altman Z-Score. Profitability is solid with margins at 16.8% and operating margin at 22.2%. Revenue growth of 41.4% demonstrates continued momentum.

Bull Case : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 31.1%. Revenue growth of 10.8% demonstrates continued momentum.

Bear Case : ATAT

The primary concerns for ATAT are Price/Book.

Bear Case : HTHT

The primary concerns for HTHT are P/E Ratio, EPS Growth, Altman Z-Score. Debt-to-equity of 2.43 is elevated, increasing financial risk.

Key Dynamics to Monitor

ATAT profiles as a growth stock while HTHT is a mature play — different risk/reward profiles.

ATAT carries more volatility with a beta of 0.64 — expect wider price swings.

ATAT is growing revenue faster at 41.4% — sustainability is the question.

HTHT generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

ATAT scores higher overall (74/100 vs 74/100), backed by strong 16.8% margins and 41.4% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Atour Lifestyle Holdings Limited American Depositary Shares

CONSUMER CYCLICAL · LODGING · USA

Atour Lifestyle Holdings Limited, operates a chain of hotels in China. The company is headquartered in Shanghai, China.

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Huazhu Group Ltd

CONSUMER CYCLICAL · LODGING · China

Huazhu Group Limited, develops leased and owned, managed and franchised hotels mainly in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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