Comparing Inspirato (NASDAQ:ISPO) and Carnival (NYSE:CCL)

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

Insider & Institutional Ownership

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

Volatility and Risk

Carnival has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Carnival and Inspirato, as provided by MarketBeat.

	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 currently has a consensus price target of $35.08, indicating a potential upside of 18.30%. Given Carnival’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Carnival is more favorable than Inspirato.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carnival	$26.62 billion	1.53	$2.76 billion	$2.22	13.36
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.

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%

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.