Financial Contrast: Funko (NASDAQ:FNKO) and Interactive Strength (NASDAQ:TRNR)

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

Insider and Institutional Ownership

99.2% of Funko shares are owned by institutional investors. Comparatively, 0.6% of Interactive Strength shares are owned by institutional investors. 3.9% of Funko shares are owned by company insiders. Comparatively, 0.1% of Interactive Strength shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Funko and Interactive Strength”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$940.08 million	0.41	-$67.36 million	$0.07	98.71
Interactive Strength	$11.53 million	0.17	-$23.97 million	($306.87)	-0.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Funko	0.49%	6.48%	1.82%
Interactive Strength	-159.24%	-469.40%	-52.97%

Volatility & Risk

Funko has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Interactive Strength has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Funko and Interactive Strength, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	0	3	1	0	2.25
Interactive Strength	1	0	0	0	1.00

Funko presently has a consensus target price of $7.08, suggesting a potential upside of 2.51%. Interactive Strength has a consensus target price of $157.50, suggesting a potential upside of 13,247.46%. Given Interactive Strength’s higher probable upside, analysts clearly believe Interactive Strength is more favorable than Funko.

Summary

Funko beats Interactive Strength on 12 of the 14 factors compared between the two stocks.

About Funko

Funko is a pop culture consumer products company that designs, sources and distributes collectibles and other products based on licensed characters, franchises and brands. Its best-known products include Pop! vinyl figures, along with plush toys, action figures, apparel and games. The company also sells accessories and bags through its Loungefly brand. Its products draw on properties from entertainment, sports and other areas of popular culture, and are sold through retailers, specialty stores and online channels in the United States and internationally.

About Interactive Strength

Interactive Strength Inc. is a connected fitness and wellness company that develops, manufactures and sells technology-enabled exercise equipment and related digital fitness experiences. The company focuses on combining hardware, software and subscription-based content to support strength training, cardiovascular exercise and overall physical wellness. Interactive Strength operates through fitness brands including FORME and CLMBR. FORME offers connected home strength-training systems and digital workout content, while CLMBR develops connected vertical climbing machines designed to provide full-body cardiovascular and resistance training.