Funko (NASDAQ:FNKO – Get Free Report) and Olaplex (NASDAQ:OLPX – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Funko and Olaplex, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Funko | 1 | 1 | 1 | 0 | 2.00 |
| Olaplex | 1 | 5 | 1 | 0 | 2.00 |
Funko presently has a consensus price target of $6.50, suggesting a potential upside of 18.61%. Olaplex has a consensus price target of $1.92, suggesting a potential downside of 5.74%. Given Funko’s higher probable upside, equities research analysts plainly believe Funko is more favorable than Olaplex.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Funko | $908.21 million | 0.34 | -$67.36 million | ($1.05) | -5.22 |
| Olaplex | $422.96 million | 3.24 | -$9.25 million | ($0.02) | -102.00 |
Olaplex has lower revenue, but higher earnings than Funko. Olaplex is trading at a lower price-to-earnings ratio than Funko, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Funko and Olaplex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Funko | -6.30% | -21.03% | -5.61% |
| Olaplex | -3.53% | 2.23% | 1.31% |
Insider and Institutional Ownership
99.2% of Funko shares are held by institutional investors. Comparatively, 87.4% of Olaplex shares are held by institutional investors. 3.3% of Funko shares are held by company insiders. Comparatively, 4.8% of Olaplex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Funko has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Olaplex has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.
Summary
Olaplex beats Funko on 8 of the 12 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 Olaplex
Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.
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