FNKO vs. ASAI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of Funko-A (FNKO) and Sendas Distribuidora S.A. Sponsored ADR (ASAI). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Funko-A has a Zacks Rank of #1 (Strong Buy), while Sendas Distribuidora S.A. Sponsored ADR has a Zacks Rank of #2 (Buy). This means that FNKO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
FNKO currently has a forward P/E ratio of 16.98, while ASAI has a forward P/E of 103.82. We also note that FNKO has a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASAI currently has a PEG ratio of 4.25.
Another notable valuation metric for FNKO is its P/B ratio of 2.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ASAI has a P/B of 17.59.
These metrics, and several others, help FNKO earn a Value grade of B, while ASAI has been given a Value grade of C.
FNKO has seen stronger estimate revision activity and sports more attractive valuation metrics than ASAI, so it seems like value investors will conclude that FNKO is the superior option right now.
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Funko, Inc. (FNKO) : Free Stock Analysis Report
Sendas Distribuidora S.A. Sponsored ADR (ASAI) : Free Stock Analysis Report
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