Six Flags Entertainment (NYSE:FUN) versus Inspirato (NASDAQ:ISPO) Financial Analysis

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

Profitability

This table compares Inspirato and Six Flags Entertainment’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%
Six Flags Entertainment	-57.25%	7.43%	0.38%

Analyst Recommendations

This is a breakdown of current recommendations for Inspirato and Six Flags Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspirato	1	0	0	0	1.00
Six Flags Entertainment	2	7	7	0	2.31

Six Flags Entertainment has a consensus price target of $16.92, suggesting a potential upside of 127.46%. Given Six Flags Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Six Flags Entertainment is more favorable than Inspirato.

Institutional and Insider Ownership

39.5% of Inspirato shares are owned by institutional investors. Comparatively, 64.7% of Six Flags Entertainment shares are owned by institutional investors. 50.0% of Inspirato shares are owned by company insiders. Comparatively, 2.1% of Six Flags Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Inspirato has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, Six Flags Entertainment has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Inspirato and Six Flags Entertainment”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
Six Flags Entertainment	$3.10 billion	0.25	-$1.60 billion	($17.32)	-0.43

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

Summary

Six Flags Entertainment beats Inspirato on 10 of the 14 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 Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.