Analyzing Inspirato (NASDAQ:ISPO) and Chagee (NASDAQ:CHA)

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

Risk & Volatility

Chagee has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chagee	10.23%	16.43%	11.39%
Inspirato	-4.24%	N/A	-4.10%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Chagee and Inspirato, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chagee	1	3	3	0	2.29
Inspirato	1	0	0	0	1.00

Chagee presently has a consensus target price of $14.00, indicating a potential upside of 3.63%. Given Chagee’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Chagee is more favorable than Inspirato.

Earnings and Valuation

This table compares Chagee and Inspirato”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chagee	$1.85 billion	1.34	$167.47 million	$1.01	13.38
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90

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

Institutional & Insider Ownership

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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Chagee beats Inspirato on 12 of the 14 factors compared between the two stocks.

About Chagee

Chagee, also known as 霸王茶姬, is a China-based tea beverage company that develops and sells freshly prepared drinks made with tea. Its menu includes tea lattes and other milk tea and fruit tea beverages, with an emphasis on brewed tea and tea-forward flavors. Founded in 2017 by Zhang Junjie, who serves as the company’s chairman and chief executive officer, Chagee operates a network of branded teahouses. The company serves customers primarily in China and has expanded into selected Southeast Asian markets.

About Inspirato

Inspirato Inc. is a luxury travel company that provides access to high-end vacation homes, hotels, resorts and curated travel experiences. Through its membership-based platform, the company helps travelers arrange stays in professionally managed residences and luxury hospitality properties in destinations around the world. Inspirato’s offerings have included subscription and club membership programs, including access to a portfolio of vacation accommodations, personalized trip planning and related travel services.