Norwegian Cruise Line (NYSE:NCLH) vs. Inspirato (NASDAQ:ISPO) Critical Survey

Norwegian Cruise Line (NYSE:NCLH) and Inspirato (NASDAQ:ISPO) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Norwegian Cruise Line and Inspirato, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norwegian Cruise Line	1	12	8	2	2.48
Inspirato	1	0	0	0	1.00

Norwegian Cruise Line currently has a consensus target price of $20.95, indicating a potential upside of 11.74%. Given Norwegian Cruise Line’s stronger consensus rating and higher possible upside, research analysts clearly believe Norwegian Cruise Line is more favorable than Inspirato.

Insider & Institutional Ownership

69.6% of Norwegian Cruise Line shares are held by institutional investors. Comparatively, 39.5% of Inspirato shares are held by institutional investors. 0.4% of Norwegian Cruise Line shares are held by insiders. Comparatively, 50.0% of Inspirato shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Norwegian Cruise Line and Inspirato”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norwegian Cruise Line	$9.83 billion	0.88	$423.25 million	$1.19	15.75
Inspirato	$247.65 million	0.22	-$5.39 million	($0.87)	-4.90

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

Risk & Volatility

Norwegian Cruise Line has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Inspirato has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500.

Profitability

This table compares Norwegian Cruise Line and Inspirato’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norwegian Cruise Line	5.66%	47.84%	4.46%
Inspirato	-4.24%	N/A	-4.10%

Summary

Norwegian Cruise Line beats Inspirato on 14 of the 15 factors compared between the two stocks.

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.

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.