Analyzing Funko (NASDAQ:FNKO) and Polaris (NYSE:PII)

Funko (NASDAQ:FNKO) and Polaris (NYSE:PII) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Funko and Polaris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	1	2	1	0	2.00
Polaris	1	12	1	0	2.00

Funko presently has a consensus target price of $7.08, suggesting a potential upside of 3.71%. Polaris has a consensus target price of $63.00, suggesting a potential upside of 14.85%. Given Polaris’ higher probable upside, analysts clearly believe Polaris is more favorable than Funko.

Institutional & Insider Ownership

99.2% of Funko shares are owned by institutional investors. Comparatively, 88.1% of Polaris shares are owned by institutional investors. 3.9% of Funko shares are owned by company insiders. Comparatively, 2.4% of Polaris shares are owned 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.

Valuation and Earnings

This table compares Funko and Polaris”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$908.21 million	0.42	-$67.36 million	($0.04)	-170.75
Polaris	$7.45 billion	0.42	-$465.50 million	($4.63)	-11.85

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

Risk & Volatility

Funko has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Polaris has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Funko	-0.21%	2.61%	0.71%
Polaris	-3.50%	16.77%	2.91%

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 Polaris

Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.