Inspirato (NASDAQ:ISPO – Get Free Report) and Wingstop (NASDAQ:WING – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.
Insider and Institutional Ownership
39.5% of Inspirato shares are held by institutional investors. 50.0% of Inspirato shares are held by company insiders. Comparatively, 0.5% of Wingstop shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Inspirato has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Wingstop has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Inspirato | -4.24% | N/A | -4.10% |
| Wingstop | 16.15% | -16.31% | 18.05% |
Earnings and Valuation
This table compares Inspirato and Wingstop”s top-line 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 |
| Wingstop | $696.85 million | 4.18 | $174.27 million | $4.21 | 25.39 |
Wingstop has higher revenue and earnings than Inspirato. Inspirato is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Inspirato and Wingstop, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspirato | 1 | 0 | 0 | 0 | 1.00 |
| Wingstop | 2 | 5 | 21 | 2 | 2.77 |
Wingstop has a consensus target price of $236.44, suggesting a potential upside of 121.20%. Given Wingstop’s stronger consensus rating and higher probable upside, analysts clearly believe Wingstop is more favorable than Inspirato.
Summary
Wingstop beats Inspirato on 12 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 Wingstop
Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.
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