Analyzing Xponential Fitness (NYSE:XPOF) and Inspirato (NASDAQ:ISPO)

Xponential Fitness (NYSE:XPOF) and Inspirato (NASDAQ:ISPO) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

58.6% of Xponential Fitness shares are held by institutional investors. Comparatively, 39.5% of Inspirato shares are held by institutional investors. 47.8% of Xponential Fitness shares are held by insiders. Comparatively, 50.0% of Inspirato shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Xponential Fitness and Inspirato”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$314.88 million	1.08	-$33.79 million	($1.46)	-4.76
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90

Inspirato has lower revenue, but higher earnings than Xponential Fitness. Inspirato is trading at a lower price-to-earnings ratio than Xponential Fitness, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Xponential Fitness has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Xponential Fitness and Inspirato, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	2	6	1	0	1.89
Inspirato	1	0	0	0	1.00

Xponential Fitness presently has a consensus price target of $8.92, suggesting a potential upside of 28.19%. Given Xponential Fitness’ stronger consensus rating and higher probable upside, equities analysts plainly believe Xponential Fitness is more favorable than Inspirato.

Profitability

This table compares Xponential Fitness and Inspirato’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-10.90%	-2.19%	1.91%
Inspirato	-4.24%	N/A	-4.10%

Summary

Xponential Fitness beats Inspirato on 9 of the 14 factors compared between the two stocks.

About Xponential Fitness

Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in North America. It offers pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training, and yoga services under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands. Xponential Fitness, Inc. was founded in 2017 and is headquartered in Irvine, California.

About Inspirato

Inspirato Incorporated, together with its subsidiaries, operates as a subscription-based luxury travel company. The company's portfolio includes luxury vacation homes, and accommodations at luxury hotels and resorts, as well as luxury safaris, cruises, custom-designed itineraries, and other experiences. It is involved in solving critical pain points for hospitality suppliers seeking to monetize their property with rental income. In addition, the company offers Inspirato Pass for member to book pass trips; Inspirato Club for members to book trips up to one year in advance Inspirato for Good, a platform designed to help nonprofit organizations accelerate funding results; Inspirato for Business, a business-to-business channel through which subscription and travel products are sold directly to businesses seeking to leverage luxury accommodations to recruit, retain, and reward their employees. The company was founded in 2010 and is headquartered in Denver, Colorado.