Inspirato (NASDAQ:ISPO) vs. Expedia Group (NASDAQ:EXPE) Financial Review

Inspirato (NASDAQ:ISPO) and Expedia Group (NASDAQ:EXPE) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Inspirato and Expedia Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	0	1	1	0	2.50
Expedia Group	0	16	9	0	2.36

Inspirato currently has a consensus price target of $10.50, indicating a potential upside of 176.32%. Expedia Group has a consensus price target of $148.12, indicating a potential upside of 34.28%. Given Inspirato’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Inspirato is more favorable than Expedia Group.

Insider and Institutional Ownership

39.5% of Inspirato shares are owned by institutional investors. Comparatively, 90.8% of Expedia Group shares are owned by institutional investors. 34.2% of Inspirato shares are owned by insiders. Comparatively, 8.1% of Expedia Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Inspirato has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500.

Profitability

This table compares Inspirato and Expedia Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspirato	-14.98%	N/A	-8.29%
Expedia Group	6.18%	41.63%	4.87%

Earnings and Valuation

This table compares Inspirato and Expedia Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspirato	$329.10 million	0.08	-$51.76 million	($14.56)	-0.26
Expedia Group	$12.84 billion	1.17	$797.00 million	$5.34	20.66

Expedia Group has higher revenue and earnings than Inspirato. Inspirato is trading at a lower price-to-earnings ratio than Expedia Group, indicating that it is currently the more affordable of the two stocks.

Summary

Expedia Group beats Inspirato on 11 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 Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.