Analyzing Target Hospitality (NASDAQ:TH) and Inspirato (NASDAQ:ISPO)

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

Earnings & Valuation

This table compares Inspirato and Target Hospitality”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
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, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Analyst Ratings

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

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

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 insiders. Comparatively, 68.0% of Target Hospitality shares are owned 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.

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%

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.