Financial Review: TH International (NASDAQ:THCH) and Inspirato (NASDAQ:ISPO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inspirato	-4.24%	N/A	-4.10%
TH International	-42.55%	N/A	-22.27%

Analyst Ratings

This is a summary of current ratings and price targets for Inspirato and TH International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	1	0	0	0	1.00
TH International	1	0	0	0	1.00

Institutional & Insider Ownership

39.5% of Inspirato shares are held by institutional investors. Comparatively, 91.8% of TH International shares are held by institutional investors. 50.0% of Inspirato shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Inspirato has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, TH International has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Inspirato and TH International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90
TH International	$188.21 million	0.24	-$62.13 million	($2.24)	-0.61

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

Summary

Inspirato beats TH International on 6 of the 10 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 TH International

TH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company offers brewed tea, coffee, milk tea, lemonade, hot chocolate, and coffee drinks. It is also involved in franchise related business. The company is based in Shanghai, the People's Republic of China.