Inspirato (NASDAQ:ISPO – Get Free Report) and RCI Hospitality (NASDAQ:RICK – Get Free Report) 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 profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of current recommendations for Inspirato and RCI Hospitality, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspirato | 1 | 0 | 0 | 0 | 1.00 |
| RCI Hospitality | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares Inspirato and RCI Hospitality”s top-line 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 |
| RCI Hospitality | $279.43 million | 0.67 | $10.81 million | ($0.78) | -31.31 |
RCI Hospitality has higher revenue and earnings than Inspirato. RCI Hospitality is trading at a lower price-to-earnings ratio than Inspirato, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
39.5% of Inspirato shares are held by institutional investors. Comparatively, 53.8% of RCI Hospitality shares are held by institutional investors. 50.0% of Inspirato shares are held by company insiders. Comparatively, 9.6% of RCI Hospitality shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Inspirato has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, RCI Hospitality has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Profitability
This table compares Inspirato and RCI 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% |
| RCI Hospitality | -2.31% | -2.61% | -1.10% |
Summary
RCI Hospitality beats Inspirato on 8 of the 11 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 RCI Hospitality
RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. It operates in Nightclubs, Bombshells, and Media Group segments. The company’s wholly-owned subsidiaries own and/or operates upscale adult nightclubs serving primarily businessmen and professionals under the Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, and Kappa Men's Club. Wholly-owned subsidiaries also operate restaurants and sports bars under the Bombshells Restaurant & Bar brand; and dance clubs under the Studio 80 brand. As of February 11, 2019, the company operated 46 units, including 39 nightclub units and 7 Bombshell units. In addition, it owns two national industry trade publications serving the adult nightclubs industry and the adult retail products industry; a national industry convention and tradeshow; and two national industry award shows, as well as approximately a dozen industry and social media Websites. The company founded in 1983 as Rick's Cabaret International, Inc., changed its name to RCI Hospitality Holdings, Inc. in August 2014, and is based in Houston, Texas.
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