Head to Head Review: Madison Square Garden (NYSE:MSGS) vs. Inspirato (NASDAQ:ISPO)

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

Profitability

This table compares Inspirato and Madison Square Garden’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%
Madison Square Garden	-1.55%	N/A	-1.10%

Risk & Volatility

Inspirato has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Madison Square Garden has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

39.5% of Inspirato shares are owned by institutional investors. Comparatively, 68.9% of Madison Square Garden shares are owned by institutional investors. 50.0% of Inspirato shares are owned by insiders. Comparatively, 19.1% of Madison Square Garden shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Inspirato and Madison Square Garden, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	1	0	0	0	1.00
Madison Square Garden	1	4	4	0	2.33

Madison Square Garden has a consensus price target of $286.00, indicating a potential downside of 6.95%. Given Madison Square Garden’s stronger consensus rating and higher possible upside, analysts clearly believe Madison Square Garden is more favorable than Inspirato.

Valuation and Earnings

This table compares Inspirato and Madison Square Garden”s gross revenue, earnings per share 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
Madison Square Garden	$1.04 billion	7.12	-$22.44 million	($0.69)	-445.46

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

Summary

Madison Square Garden beats Inspirato on 10 of the 13 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 Madison Square Garden

Madison Square Garden Sports Corp. operates as a professional sports company in the United States. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. The company also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League. In addition, it operates professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.