Inspirato (NASDAQ:ISPO) and Cactus Acquisition Corp. 1 (NASDAQ:CCTS) Critical Review

Inspirato (NASDAQ:ISPO) and Cactus Acquisition Corp. 1 (NASDAQ:CCTS) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Inspirato and Cactus Acquisition Corp. 1, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	0	1	1	0	2.50
Cactus Acquisition Corp. 1	0	0	0	0	N/A

Inspirato currently has a consensus price target of $10.50, suggesting a potential upside of 161.85%. Given Inspirato’s higher probable upside, equities analysts plainly believe Inspirato is more favorable than Cactus Acquisition Corp. 1.

Insider and Institutional Ownership

39.5% of Inspirato shares are owned by institutional investors. Comparatively, 86.4% of Cactus Acquisition Corp. 1 shares are owned by institutional investors. 34.2% of Inspirato shares are owned by insiders. Comparatively, 58.3% of Cactus Acquisition Corp. 1 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.

Volatility and Risk

Inspirato has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, Cactus Acquisition Corp. 1 has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Earnings & Valuation

This table compares Inspirato and Cactus Acquisition Corp. 1″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspirato	$300.94 million	0.09	-$51.76 million	($14.56)	-0.28
Cactus Acquisition Corp. 1	N/A	N/A	N/A	N/A	N/A

Cactus Acquisition Corp. 1 has lower revenue, but higher earnings than Inspirato.

Profitability

This table compares Inspirato and Cactus Acquisition Corp. 1’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspirato	-10.93%	N/A	-13.20%
Cactus Acquisition Corp. 1	N/A	N/A	N/A

Summary

Cactus Acquisition Corp. 1 beats Inspirato on 5 of the 8 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 Cactus Acquisition Corp. 1

Cactus Acquisition Corp. 1 Limited does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the emerging technology sector. The company was incorporated in 2021 and is based in Cranbury, New Jersey.