Analyzing Inspirato (NASDAQ:ISPO) & Carnival (NYSE:CCL)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Carnival and Inspirato, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carnival	0	6	20	1	2.81
Inspirato	1	0	0	0	1.00

Carnival presently has a consensus target price of $35.08, indicating a potential upside of 26.27%. Given Carnival’s stronger consensus rating and higher probable upside, analysts clearly believe Carnival is more favorable than Inspirato.

Earnings & Valuation

This table compares Carnival 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
Carnival	$26.62 billion	1.43	$2.76 billion	$2.22	12.52
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90

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

Institutional and Insider Ownership

67.2% of Carnival shares are owned by institutional investors. Comparatively, 39.5% of Inspirato shares are owned by institutional investors. 7.9% of Carnival shares are owned by insiders. Comparatively, 50.0% of Inspirato shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Carnival	11.24%	26.11%	6.36%
Inspirato	-4.24%	N/A	-4.10%

Risk and Volatility

Carnival has a beta of 2.32, suggesting that its stock price is 132% more volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500.

Summary

Carnival beats Inspirato on 14 of the 15 factors compared between the two stocks.

About Carnival

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.

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.