Head to Head Review: Funko (NASDAQ:FNKO) vs. Central Garden & Pet (NASDAQ:CENT)

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

Profitability

This table compares Central Garden & Pet and Funko’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	5.04%	10.99%	4.75%
Funko	-7.42%	-25.96%	-7.29%

Institutional & Insider Ownership

16.1% of Central Garden & Pet shares are held by institutional investors. Comparatively, 99.2% of Funko shares are held by institutional investors. 8.2% of Central Garden & Pet shares are held by company insiders. Comparatively, 3.3% of Funko shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Central Garden & Pet and Funko”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Garden & Pet	$3.13 billion	0.74	$162.84 million	$2.45	15.11
Funko	$908.21 million	0.18	-$67.36 million	($1.24)	-2.36

Central Garden & Pet has higher revenue and earnings than Funko. Funko is trading at a lower price-to-earnings ratio than Central Garden & Pet, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Central Garden & Pet and Funko, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	0	3	1	1	2.60
Funko	1	1	1	0	2.00

Central Garden & Pet currently has a consensus target price of $42.50, indicating a potential upside of 14.80%. Funko has a consensus target price of $5.83, indicating a potential upside of 99.09%. Given Funko’s higher possible upside, analysts clearly believe Funko is more favorable than Central Garden & Pet.

Volatility and Risk

Central Garden & Pet has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Funko has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Summary

Central Garden & Pet beats Funko on 12 of the 14 factors compared between the two stocks.

About Central Garden & Pet

Central Garden & Pet Co. engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions. The Garden segment includes lawn and garden consumables such as grass, vegetable, flower and herb seed, wild bird feed, bird houses and other birding accessories, weed, grass, and other herbicides, insecticide and pesticide products, fertilizers, and live plants. The company was founded by William E. Brown in 1980 and is headquartered in Walnut Creek, CA.

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.