ESH Acquisition (NASDAQ:ESHA) and Inspirato (NASDAQ:ISPO) Critical Comparison

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

Insider & Institutional 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspirato	$287.45 million	0.13	-$51.76 million	($4.40)	-0.78
ESH Acquisition	N/A	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Inspirato and ESH Acquisition, as provided 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 currently has a consensus target price of $10.50, indicating a potential upside of 206.12%. Given Inspirato’s stronger consensus rating and higher probable upside, equities analysts clearly believe Inspirato is more favorable than ESH Acquisition.

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

Risk & Volatility

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

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.