Head to Head Review: FST (NASDAQ:KBSX) and Funko (NASDAQ:FNKO)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Funko and FST, as reported by MarketBeat.com.

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

Funko currently has a consensus price target of $7.08, suggesting a potential upside of 20.88%. FST has a consensus price target of $4.00, suggesting a potential upside of 175.86%. Given FST’s higher probable upside, analysts clearly believe FST is more favorable than Funko.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Funko	-0.21%	2.61%	0.71%
FST	-0.90%	1.66%	0.40%

Insider and Institutional Ownership

99.2% of Funko shares are owned by institutional investors. Comparatively, 50.9% of FST shares are owned by institutional investors. 3.9% of Funko shares are owned by insiders. Comparatively, 54.6% of FST shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Funko has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, FST has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Earnings & Valuation

This table compares Funko and FST”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$908.21 million	0.36	-$67.36 million	($0.04)	-146.50
FST	$47.97 million	1.14	-$1.50 million	($0.01)	-145.00

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

FST Corp. designs, manufactures, markets, and distributes steel golf shafts to golf club original equipment manufacturers and distributors worldwide. The company offers steel shafts under the KBS brand name. FST Corp.is based in Chiayi, Taiwan.