Peloton Interactive (NASDAQ:PTON – Get Free Report) and Funko (NASDAQ:FNKO – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Peloton Interactive and Funko, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peloton Interactive | 1 | 7 | 5 | 0 | 2.31 |
| Funko | 1 | 1 | 1 | 0 | 2.00 |
Peloton Interactive currently has a consensus target price of $7.94, indicating a potential upside of 47.67%. Funko has a consensus target price of $7.08, indicating a potential upside of 5.25%. Given Peloton Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Peloton Interactive is more favorable than Funko.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peloton Interactive | $2.45 billion | 0.97 | $63.20 million | $0.12 | 44.83 |
| Funko | $908.21 million | 0.41 | -$67.36 million | ($0.04) | -168.25 |
Peloton Interactive has higher revenue and earnings than Funko. Funko is trading at a lower price-to-earnings ratio than Peloton Interactive, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Peloton Interactive and Funko’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peloton Interactive | 2.58% | -23.92% | 3.00% |
| Funko | -0.21% | 2.61% | 0.71% |
Volatility and Risk
Peloton Interactive has a beta of 2.52, suggesting that its share price is 152% more volatile than the S&P 500. Comparatively, Funko has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Institutional & Insider Ownership
77.0% of Peloton Interactive shares are owned by institutional investors. Comparatively, 99.2% of Funko shares are owned by institutional investors. 1.3% of Peloton Interactive shares are owned by insiders. Comparatively, 3.9% of Funko shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Peloton Interactive beats Funko on 11 of the 14 factors compared between the two stocks.
About Peloton Interactive
Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 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.
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