Inspirato (NASDAQ:ISPO – Get Free Report) and Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and price targets for Inspirato and Dave & Buster’s Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspirato | 1 | 0 | 0 | 0 | 1.00 |
| Dave & Buster’s Entertainment | 2 | 5 | 2 | 0 | 2.00 |
Dave & Buster’s Entertainment has a consensus target price of $17.33, suggesting a potential upside of 113.20%. Given Dave & Buster’s Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Dave & Buster’s Entertainment is more favorable than Inspirato.
Insider and Institutional Ownership
39.5% of Inspirato shares are held by institutional investors. Comparatively, 91.4% of Dave & Buster’s Entertainment shares are held by institutional investors. 50.0% of Inspirato shares are held by company insiders. Comparatively, 1.7% of Dave & Buster’s Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Inspirato and Dave & Buster’s 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% |
| Dave & Buster’s Entertainment | -4.26% | -51.87% | -1.29% |
Earnings & Valuation
This table compares Inspirato and Dave & Buster’s Entertainment”s 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 |
| Dave & Buster’s Entertainment | $2.08 billion | 0.14 | -$48.70 million | ($2.57) | -3.16 |
Inspirato has higher earnings, but lower revenue than Dave & Buster’s Entertainment. Inspirato is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Inspirato has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.
Summary
Dave & Buster’s Entertainment beats Inspirato on 8 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 Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
Receive News & Ratings for Inspirato Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Inspirato and related companies with MarketBeat.com's FREE daily email newsletter.
