Critical Analysis: Six Flags Entertainment (NYSE:FUN) & Inspirato (NASDAQ:ISPO)

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

Volatility and Risk

Six Flags Entertainment has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Inspirato has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500.

Profitability

This table compares Six Flags Entertainment and Inspirato’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Six Flags Entertainment	-14.92%	-1.00%	-0.22%
Inspirato	-4.24%	N/A	-3.95%

Analyst Recommendations

This is a breakdown of current recommendations for Six Flags Entertainment and Inspirato, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Six Flags Entertainment	2	3	9	0	2.50
Inspirato	1	0	0	0	1.00

Six Flags Entertainment currently has a consensus target price of $34.07, suggesting a potential upside of 88.60%. Given Six Flags Entertainment’s stronger consensus rating and higher probable upside, research analysts clearly believe Six Flags Entertainment is more favorable than Inspirato.

Earnings and Valuation

This table compares Six Flags Entertainment and Inspirato”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Six Flags Entertainment	$3.17 billion	0.58	-$231.16 million	($4.85)	-3.72
Inspirato	$247.65 million	0.12	-$5.39 million	($0.87)	-2.84

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

Insider and Institutional Ownership

64.7% of Six Flags Entertainment shares are owned by institutional investors. Comparatively, 39.5% of Inspirato shares are owned by institutional investors. 1.8% of Six Flags Entertainment shares are owned by company insiders. Comparatively, 50.0% of Inspirato shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Six Flags Entertainment beats Inspirato on 8 of the 14 factors compared between the two stocks.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

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.