Head to Head Analysis: Funko (NASDAQ:FNKO) & Foxx Development (NASDAQ:FOXX)

Foxx Development (NASDAQ:FOXX) and Funko (NASDAQ:FNKO) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Foxx Development and Funko’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Foxx Development	-24.62%	N/A	-40.69%
Funko	-7.39%	-23.66%	-7.02%

Risk & Volatility

Foxx Development has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500. Comparatively, Funko has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Institutional & Insider Ownership

60.4% of Foxx Development shares are held by institutional investors. Comparatively, 99.2% of Funko shares are held by institutional investors. 31.6% of Foxx Development shares are held by insiders. Comparatively, 3.3% of Funko shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Foxx Development	$65.92 million	0.57	-$9.02 million	($2.26)	-2.37
Funko	$1.05 billion	0.26	-$14.72 million	($1.27)	-3.94

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Foxx Development and Funko, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Foxx Development	1	0	0	0	1.00
Funko	1	1	1	0	2.00

Funko has a consensus price target of $4.75, indicating a potential downside of 5.00%. Given Funko’s stronger consensus rating and higher probable upside, analysts plainly believe Funko is more favorable than Foxx Development.

Summary

Funko beats Foxx Development on 9 of the 14 factors compared between the two stocks.

About Foxx Development

Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.

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.