SRM Entertainment (NASDAQ:SRM – Get Free Report) and Funko (NASDAQ:FNKO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Insider & Institutional 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares SRM Entertainment and Funko’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SRM Entertainment | N/A | N/A | N/A |
| Funko | -13.52% | -18.61% | -6.31% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SRM Entertainment | N/A | N/A | N/A | N/A | N/A |
| Funko | $1.32 billion | 0.32 | -$8.03 million | ($3.41) | -2.42 |
SRM Entertainment has higher earnings, but lower revenue than Funko.
Analyst Ratings
This is a summary of recent recommendations for SRM Entertainment and Funko, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SRM Entertainment | 0 | 0 | 0 | 0 | N/A |
| Funko | 1 | 6 | 1 | 0 | 2.00 |
Funko has a consensus price target of $9.81, suggesting a potential upside of 18.80%. Given Funko’s higher probable upside, analysts plainly believe Funko is more favorable than SRM Entertainment.
Summary
Funko beats SRM Entertainment on 5 of the 8 factors compared between the two stocks.
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.
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.
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