Funko (NASDAQ:FNKO – Get Free Report) and SRM Entertainment (NASDAQ:SRM – Get Free Report) 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 earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Valuation and Earnings
This table compares Funko and SRM Entertainment’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Funko | $1.32 billion | 0.27 | -$8.03 million | ($3.41) | -2.02 |
| SRM Entertainment | N/A | N/A | N/A | N/A | N/A |
SRM Entertainment has lower revenue, but higher earnings than Funko.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Funko | 1 | 6 | 1 | 0 | 2.00 |
| SRM Entertainment | 0 | 0 | 0 | 0 | N/A |
Funko presently has a consensus price target of $9.81, suggesting a potential upside of 42.42%. Given Funko’s higher probable upside, equities analysts plainly believe Funko is more favorable than SRM Entertainment.
Institutional and Insider Ownership
89.9% of Funko shares are owned by institutional investors. 11.5% of Funko shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Funko and SRM Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Funko | -13.52% | -18.61% | -6.31% |
| SRM Entertainment | N/A | N/A | N/A |
Summary
Funko beats SRM Entertainment on 5 of the 8 factors compared between the two stocks.
About Funko
Funko, Inc., a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally. The company provides media and entertainment content, including movies, television (TV) shows, video games, music, and sports; fashion accessories, including handbags, backpacks, wallets, clothing, and other accessories; and figures, apparel, board games, accessories, plush products, homewares, vinyl records and art prints, posters, and digital non-fungible tokens, as well as creates soundtracks, toys, books, games, and other collectibles. It markets its products under the Pop!, Loungefly, Funko, Mystery Minis, Paka Paka, Popsies, Vinyl Gold, Funko Soda, Funko Games, Funko action figures, Funko Plush, and Funko Gold brand names; and licenses its properties under the classic evergreen, movie release, current TV, and current video game categories. The company sells its products through specialty retailers, mass-market retailers, e-commerce sites, and distributors; and at specialty licensing and comic book shows, conventions, and exhibitions, as well as through its e-commerce business. Funko, Inc. was incorporated in 2017 and is headquartered in Everett, Washington.
About SRM Entertainment
SRM Entertainment, Inc. designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.
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