Head-To-Head Analysis: Target Hospitality (NASDAQ:TH) vs. Inspirato (NASDAQ:ISPO)

Inspirato (NASDAQ:ISPO) and Target Hospitality (NASDAQ:TH) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Inspirato and Target Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspirato	-4.24%	N/A	-4.10%
Target Hospitality	-3.08%	-1.78%	-1.24%

Valuation & Earnings

This table compares Inspirato and Target Hospitality”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90
Target Hospitality	$386.27 million	2.35	$71.26 million	($0.11)	-82.55

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.

Volatility and Risk

Inspirato has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Insider & Institutional Ownership

39.5% of Inspirato shares are owned by institutional investors. Comparatively, 32.4% of Target Hospitality shares are owned by institutional investors. 50.0% of Inspirato shares are owned by company insiders. Comparatively, 68.0% of Target Hospitality shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Inspirato and Target Hospitality, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	1	0	0	0	1.00
Target Hospitality	1	0	1	0	2.00

Target Hospitality has a consensus target price of $11.00, suggesting a potential upside of 21.15%. Given Target Hospitality’s stronger consensus rating and higher probable upside, analysts clearly believe Target Hospitality is more favorable than Inspirato.

Summary

Target Hospitality beats Inspirato on 11 of the 14 factors compared between the two stocks.

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.

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.