Central Garden & Pet (NASDAQ:CENT) versus Funko (NASDAQ:FNKO) Head-To-Head Contrast

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

Insider & Institutional Ownership

99.2% of Funko shares are held by institutional investors. Comparatively, 16.1% of Central Garden & Pet shares are held by institutional investors. 3.3% of Funko shares are held by company insiders. Comparatively, 8.2% of Central Garden & Pet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Funko has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Earnings and Valuation

This table compares Funko and Central Garden & Pet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$908.21 million	0.21	-$67.36 million	($1.24)	-2.72
Central Garden & Pet	$3.13 billion	0.70	$162.84 million	$2.45	14.36

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

Profitability

This table compares Funko and Central Garden & Pet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Funko	-7.42%	-25.96%	-7.29%
Central Garden & Pet	5.04%	10.99%	4.75%

Analyst Recommendations

This is a summary of current ratings and price targets for Funko and Central Garden & Pet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	1	1	1	0	2.00
Central Garden & Pet	0	3	1	1	2.60

Funko currently has a consensus price target of $5.83, indicating a potential upside of 73.10%. Central Garden & Pet has a consensus price target of $42.50, indicating a potential upside of 20.77%. Given Funko’s higher possible upside, analysts clearly believe Funko is more favorable than Central Garden & Pet.

Summary

Central Garden & Pet beats Funko on 12 of the 14 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; 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.

About Central Garden & Pet

Central Garden & Pet Co. engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions. The Garden segment includes lawn and garden consumables such as grass, vegetable, flower and herb seed, wild bird feed, bird houses and other birding accessories, weed, grass, and other herbicides, insecticide and pesticide products, fertilizers, and live plants. The company was founded by William E. Brown in 1980 and is headquartered in Walnut Creek, CA.