FNKO vs. VZIO: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Funko-A (FNKO) or VIZIO Holding Corp. (VZIO). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Funko-A has a Zacks Rank of #1 (Strong Buy), while VIZIO Holding Corp. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FNKO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 9.09, while VZIO has a forward P/E of 244.09. We also note that FNKO has a PEG ratio of 0.22. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VZIO currently has a PEG ratio of 9.76.
Another notable valuation metric for FNKO is its P/B ratio of 2.09. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VZIO has a P/B of 5.08.
Based on these metrics and many more, FNKO holds a Value grade of B, while VZIO has a Value grade of D.
FNKO has seen stronger estimate revision activity and sports more attractive valuation metrics than VZIO, 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
VIZIO Holding Corp. (VZIO) : Free Stock Analysis Report
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