Inspirato (NASDAQ:ISPO – Get Free Report) and Inspired Entertainment (NASDAQ:INSE – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Inspirato and Inspired Entertainment’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% |
| Inspired Entertainment | -3.34% | -30.08% | 0.92% |
Earnings and Valuation
This table compares Inspirato and Inspired Entertainment”s gross revenue, earnings per share (EPS) 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 |
| Inspired Entertainment | $304.10 million | 0.31 | -$17.00 million | ($0.33) | -10.82 |
Inspirato has higher earnings, but lower revenue than Inspired Entertainment. Inspired Entertainment is trading at a lower price-to-earnings ratio than Inspirato, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Inspirato and Inspired Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspirato | 1 | 0 | 0 | 0 | 1.00 |
| Inspired Entertainment | 1 | 2 | 4 | 0 | 2.43 |
Inspired Entertainment has a consensus price target of $11.44, indicating a potential upside of 220.38%. Given Inspired Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Inspired Entertainment is more favorable than Inspirato.
Risk & Volatility
Inspirato has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Insider and Institutional Ownership
39.5% of Inspirato shares are held by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are held by institutional investors. 50.0% of Inspirato shares are held by company insiders. Comparatively, 14.4% of Inspired Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Inspired Entertainment beats Inspirato on 10 of the 14 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 Inspired Entertainment
Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.
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