Analyzing Inspirato (NASDAQ:ISPO) & Wingstop (NASDAQ:WING)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wingstop	16.15%	-16.31%	18.05%
Inspirato	-4.24%	N/A	-4.10%

Institutional and Insider Ownership

39.5% of Inspirato shares are held by institutional investors. 0.5% of Wingstop shares are held by company insiders. Comparatively, 50.0% of Inspirato shares are held by company 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.

Volatility and Risk

Wingstop has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Wingstop and Inspirato, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wingstop	2	5	21	2	2.77
Inspirato	1	0	0	0	1.00

Wingstop presently has a consensus target price of $236.44, suggesting a potential upside of 93.39%. Given Wingstop’s stronger consensus rating and higher possible upside, research analysts plainly believe Wingstop is more favorable than Inspirato.

Valuation and Earnings

This table compares Wingstop and Inspirato”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wingstop	$696.85 million	4.78	$174.27 million	$4.21	29.04
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90

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

Summary

Wingstop beats Inspirato on 12 of the 15 factors compared between the two stocks.

About Wingstop

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.

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.