Funko (NASDAQ:FNKO) vs. Grow Solutions (OTCMKTS:GRSO) Critical Analysis

Funko (NASDAQ:FNKO) and Grow Solutions (OTCMKTS:GRSO) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

Funko has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Grow Solutions has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Funko	-1.92%	-5.01%	-1.60%
Grow Solutions	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$1.05 billion	0.24	-$14.72 million	($0.37)	-12.38
Grow Solutions	N/A	N/A	N/A	N/A	N/A

Grow Solutions has lower revenue, but higher earnings than Funko.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Funko and Grow Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	0	2	1	1	2.75
Grow Solutions	0	0	0	0	0.00

Funko presently has a consensus target price of $9.88, suggesting a potential upside of 115.61%. Given Funko’s stronger consensus rating and higher possible upside, equities analysts clearly believe Funko is more favorable than Grow Solutions.

Summary

Funko beats Grow Solutions on 8 of the 11 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 Grow Solutions

Grow Solutions Holdings, Inc. provides products and services to the regulated legal cannabis industry in the United States and internationally. Its operations focus on the retail sale and distribution of indoor and outdoor garden supplies and grow equipment, including for the legal growing of cannabis. The company also provides consulting services that include design and construction to approved and licensed legal cannabis operators, as well as assistance with licensure and related applications for legal cannabis operators. In addition, it designs and manufactures vaporizers, extraction presses, quartz accessories, and storage solutions which are used to sale in tobacco stores, smoke shops, and cannabis dispensaries. Grow Solutions Holdings, Inc. was founded in 2014 and is based in Denver, Colorado.