Alto Ingredients (NASDAQ:ALTO – Get Free Report) and Funko (NASDAQ:FNKO – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Earnings and Valuation
This table compares Alto Ingredients and Funko”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alto Ingredients | $917.93 million | 0.46 | $13.34 million | $0.16 | 34.50 |
| Funko | $908.21 million | 0.27 | -$67.36 million | ($1.24) | -3.56 |
Institutional & Insider Ownership
42.4% of Alto Ingredients shares are held by institutional investors. Comparatively, 99.2% of Funko shares are held by institutional investors. 5.3% of Alto Ingredients shares are held by insiders. Comparatively, 3.3% of Funko shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Alto Ingredients and Funko, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alto Ingredients | 0 | 1 | 0 | 1 | 3.00 |
| Funko | 1 | 1 | 1 | 0 | 2.00 |
Funko has a consensus target price of $5.83, suggesting a potential upside of 32.28%. Given Funko’s higher possible upside, analysts clearly believe Funko is more favorable than Alto Ingredients.
Risk & Volatility
Alto Ingredients has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Funko has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Profitability
This table compares Alto Ingredients and Funko’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alto Ingredients | 1.45% | 2.99% | 1.69% |
| Funko | -7.42% | -25.96% | -7.29% |
Summary
Alto Ingredients beats Funko on 11 of the 15 factors compared between the two stocks.
About Alto Ingredients
Alto Ingredients, Inc. produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Campus Production, and Western Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used in corn oils in the food and beverage markets; alcohols and other products for paint applications and fertilizers in the industrial and agriculture markets; and essential ingredients include dried yeast, corn protein meal, corn protein feed, distiller's grains, and liquid feed for commercial animal feed and pet food applications, as well as yeast for human consumption. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry, renewable diesel, and biodiesel customers. It operates alcohol production facilities. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.
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.
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