Target Hospitality (NASDAQ:TH – Get Free Report) and Inspirato (NASDAQ:ISPO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Profitability
This table compares Target Hospitality and Inspirato’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Target Hospitality | -11.58% | -8.55% | -6.37% |
| Inspirato | -4.24% | N/A | -4.10% |
Valuation & Earnings
This table compares Target Hospitality and Inspirato”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Target Hospitality | $320.64 million | 2.90 | $71.26 million | ($0.11) | -84.64 |
| Inspirato | $247.65 million | 0.22 | -$5.39 million | ($0.87) | -4.90 |
Target Hospitality has higher revenue and earnings than Inspirato. Target Hospitality is trading at a lower price-to-earnings ratio than Inspirato, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
32.4% of Target Hospitality shares are held by institutional investors. Comparatively, 39.5% of Inspirato shares are held by institutional investors. 68.0% of Target Hospitality shares are held by insiders. Comparatively, 50.0% of Inspirato shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Target Hospitality has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Target Hospitality and Inspirato, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Target Hospitality | 1 | 0 | 1 | 1 | 2.67 |
| Inspirato | 1 | 0 | 0 | 0 | 1.00 |
Target Hospitality presently has a consensus price target of $11.00, indicating a potential upside of 18.15%. Given Target Hospitality’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Target Hospitality is more favorable than Inspirato.
Summary
Target Hospitality beats Inspirato on 10 of the 15 factors compared between the two stocks.
About Target Hospitality
Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.
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.
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