Analyzing Airbnb (NASDAQ:ABNB) and Inspirato (NASDAQ:ISPO)

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

Institutional and Insider Ownership

39.5% of Inspirato shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 50.0% of Inspirato shares are held by company insiders. Comparatively, 27.2% of Airbnb shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Inspirato and Airbnb”s 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
Airbnb	$12.24 billion	6.52	$2.51 billion	$4.06	32.60

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Inspirato and Airbnb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	1	0	0	0	1.00
Airbnb	1	13	21	2	2.65

Airbnb has a consensus target price of $157.67, suggesting a potential upside of 19.13%. Given Airbnb’s stronger consensus rating and higher probable upside, analysts plainly believe Airbnb is more favorable than Inspirato.

Profitability

This table compares Inspirato and Airbnb’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%
Airbnb	19.90%	31.24%	10.16%

Risk and Volatility

Inspirato has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Summary

Airbnb beats Inspirato on 14 of the 15 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 Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.