Financial Contrast: Inspirato (NASDAQ:ISPO) and Marriott Vacations Worldwide (NYSE:VAC)

Marriott Vacations Worldwide (NYSE:VAC) and Inspirato (NASDAQ:ISPO) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Marriott Vacations Worldwide and Inspirato’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	-6.12%	11.77%	2.78%
Inspirato	-4.24%	N/A	-4.10%

Volatility & Risk

Marriott Vacations Worldwide has a beta of 1.24, suggesting that its share price is 24% 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.

Insider and Institutional Ownership

89.5% of Marriott Vacations Worldwide shares are held by institutional investors. Comparatively, 39.5% of Inspirato shares are held by institutional investors. 1.6% of Marriott Vacations Worldwide shares are held by insiders. Comparatively, 50.0% of Inspirato shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Marriott Vacations Worldwide and Inspirato, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	3	3	5	0	2.18
Inspirato	1	0	0	0	1.00

Marriott Vacations Worldwide currently has a consensus target price of $73.67, indicating a potential upside of 13.67%. Given Marriott Vacations Worldwide’s stronger consensus rating and higher probable upside, research analysts plainly believe Marriott Vacations Worldwide is more favorable than Inspirato.

Earnings & Valuation

This table compares Marriott Vacations Worldwide and Inspirato”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$5.03 billion	0.44	-$308.00 million	($9.27)	-6.99
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90

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

Summary

Marriott Vacations Worldwide beats Inspirato on 9 of the 14 factors compared between the two stocks.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club, and Marriott Vacation Club Pulse brands. It develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through Interval International, and Aqua-Aston business brands. Further, it provides financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. The company was founded in 1984 and is headquartered in Orlando, Florida.

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.