Inspirato (NASDAQ:ISPO) & ESH Acquisition (NASDAQ:ESHA) Critical Analysis

Inspirato (NASDAQ:ISPO) and ESH Acquisition (NASDAQ:ESHA) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Earnings and Valuation

This table compares Inspirato and ESH Acquisition”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspirato	$329.10 million	0.12	-$51.76 million	($4.40)	-0.81
ESH Acquisition	N/A	N/A	N/A	N/A	N/A

ESH Acquisition has lower revenue, but higher earnings than Inspirato.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Inspirato and ESH Acquisition, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	0	1	1	0	2.50
ESH Acquisition	0	0	0	0	0.00

Inspirato presently has a consensus price target of $10.50, suggesting a potential upside of 194.94%. Given Inspirato’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Inspirato is more favorable than ESH Acquisition.

Volatility and Risk

Inspirato has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, ESH Acquisition has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500.

Institutional and Insider Ownership

39.5% of Inspirato shares are owned by institutional investors. Comparatively, 96.6% of ESH Acquisition shares are owned by institutional investors. 42.0% of Inspirato shares are owned by insiders. Comparatively, 19.6% of ESH Acquisition shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Inspirato and ESH Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspirato	-4.14%	N/A	-11.74%
ESH Acquisition	N/A	N/A	N/A

Summary

Inspirato beats ESH Acquisition on 5 of the 9 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 ESH Acquisition

ESH Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more operating businesses or assets in the sports, hospitality, and music and entertainment sectors. The company was incorporated in 2021 and is based in New York, New York.