Head to Head Analysis: Funko (NASDAQ:FNKO) and Interparfums (NASDAQ:IPAR)

Interparfums (NASDAQ:IPAR) and Funko (NASDAQ:FNKO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Interparfums and Funko, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	1	2	5	1	2.67
Funko	1	1	1	0	2.00

Interparfums currently has a consensus price target of $119.14, suggesting a potential upside of 22.11%. Funko has a consensus price target of $4.75, suggesting a potential upside of 17.00%. Given Interparfums’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Interparfums is more favorable than Funko.

Volatility & Risk

Interparfums has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Funko has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Insider and Institutional Ownership

55.6% of Interparfums shares are owned by institutional investors. Comparatively, 99.2% of Funko shares are owned by institutional investors. 43.7% of Interparfums shares are owned by insiders. Comparatively, 3.3% of Funko shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Interparfums and Funko’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.24%	16.31%	11.22%
Funko	-7.39%	-23.66%	-7.02%

Earnings and Valuation

This table compares Interparfums and Funko”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.45 billion	2.15	$164.36 million	$5.11	19.09
Funko	$1.05 billion	0.21	-$14.72 million	($1.27)	-3.20

Interparfums has higher revenue and earnings than Funko. Funko is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Summary

Interparfums beats Funko on 14 of the 15 factors compared between the two stocks.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.

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.