American Outdoor Brands (NASDAQ:AOUT – Get Free Report) and Funko (NASDAQ:FNKO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility & Risk
American Outdoor Brands has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Funko has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Earnings & Valuation
This table compares American Outdoor Brands and Funko”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Outdoor Brands | $190.54 million | 0.76 | -$9.21 million | ($0.73) | -15.75 |
| Funko | $908.21 million | 0.38 | -$67.36 million | ($0.04) | -152.90 |
American Outdoor Brands has higher earnings, but lower revenue than Funko. Funko is trading at a lower price-to-earnings ratio than American Outdoor Brands, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for American Outdoor Brands and Funko, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Outdoor Brands | 1 | 0 | 2 | 1 | 2.75 |
| Funko | 1 | 1 | 1 | 0 | 2.00 |
American Outdoor Brands presently has a consensus target price of $14.25, suggesting a potential upside of 23.97%. Funko has a consensus target price of $7.08, suggesting a potential upside of 15.82%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, equities research analysts plainly believe American Outdoor Brands is more favorable than Funko.
Profitability
This table compares American Outdoor Brands and Funko’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Outdoor Brands | -4.83% | 0.67% | 0.48% |
| Funko | -0.21% | 2.61% | 0.71% |
Insider and Institutional Ownership
49.9% of American Outdoor Brands shares are held by institutional investors. Comparatively, 99.2% of Funko shares are held by institutional investors. 5.3% of American Outdoor Brands shares are held by insiders. Comparatively, 3.9% of Funko shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
American Outdoor Brands beats Funko on 8 of the 15 factors compared between the two stocks.
About American Outdoor Brands
American Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. In addition, it offers electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. The company sells its products through e-commerce and traditional distribution channels under the Adventurer, Harvester, Marksman, and Defender brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.
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; figures, handbags, backpacks, wallets, apparel, accessories, plush products, homewares, and digital non-fungible tokens; and art prints and vinyl records, posters, soundtracks, toys, books, games, and other collectibles. It markets its products under the Pop!, Loungefly, Funko, Mystery Minis, Bitty Pop!, Funko action figures, Funko Plush, and Funko Soda 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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