Inspirato (NASDAQ:ISPO) & TH International (NASDAQ:THCH) Critical Contrast
by Tristan Rich · The Markets DailyTH International (NASDAQ:THCH – Get Free Report) and Inspirato (NASDAQ:ISPO – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.
Valuation and Earnings
This table compares TH International and Inspirato”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TH International | $188.21 million | 0.24 | -$62.13 million | ($2.24) | -0.60 |
| Inspirato | $247.65 million | 0.22 | -$5.39 million | ($0.87) | -4.90 |
Inspirato has higher revenue and earnings than TH International. Inspirato is trading at a lower price-to-earnings ratio than TH International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
TH International has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.
Profitability
This table compares TH International and Inspirato’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TH International | -42.55% | N/A | -22.27% |
| Inspirato | -4.24% | N/A | -4.10% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for TH International and Inspirato, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TH International | 1 | 0 | 0 | 0 | 1.00 |
| Inspirato | 1 | 0 | 0 | 0 | 1.00 |
Insider and Institutional Ownership
91.8% of TH International shares are held by institutional investors. Comparatively, 39.5% of Inspirato shares are held by institutional investors. 50.0% of Inspirato shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Inspirato beats TH International on 6 of the 10 factors compared between the two stocks.
About TH International
TH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company offers brewed tea, coffee, milk tea, lemonade, hot chocolate, and coffee drinks. It is also involved in franchise related business. The company is based in Shanghai, the People's Republic of China.
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.