Financial Review: Kid Brands (OTCMKTS:KIDBQ) vs. Funko (NASDAQ:FNKO)

Kid Brands (OTCMKTS:KIDBQ) and Funko (NASDAQ:FNKO) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kid Brands and Funko, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kid Brands	0	0	0	0	0.00
Funko	1	1	1	0	2.00

Funko has a consensus price target of $6.50, indicating a potential upside of 18.18%. Given Funko’s stronger consensus rating and higher probable upside, analysts plainly believe Funko is more favorable than Kid Brands.

Insider and Institutional Ownership

99.2% of Funko shares are owned by institutional investors. 24.5% of Kid Brands shares are owned by insiders. Comparatively, 3.3% of Funko shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kid Brands	N/A	N/A	N/A
Funko	-6.30%	-21.03%	-5.61%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kid Brands	N/A	N/A	N/A	N/A	N/A
Funko	$908.21 million	0.34	-$67.36 million	($1.05)	-5.24

Kid Brands has higher earnings, but lower revenue than Funko.

Summary

Funko beats Kid Brands on 5 of the 9 factors compared between the two stocks.

About Kid Brands

Kid Brands, Inc., together with its subsidiaries, designs, imports, markets, and distributes infant and juvenile consumer products. The company offers infant bedding and related nursery accessories and décor, such as blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art, as well as nursery appliances, diaper bags, and spa/bath products art under the Kids Line, Carter’s, Disney, CoCaLo Baby, CoCaLo Couture, and CoCaLo Naturals brands. It also provides cribs, mattresses, and other nursery furniture under the BabiItalia, Europa Baby, Bonavita, Graco, and Serta brands; and developmental toys and feeding products, bath and baby care items, and baby gear with features that address the various stages of an infant’s early years under the Sassy, Carter’s, Disney, Garanimals, and Kokopax brands. In addition, the company markets a range of products under various licenses, including Carter’s, Disney, Graco, and Serta. Kid Brands, Inc. sells its products through its own direct sales force, as well as through independent representatives and distributors to retail customers in the United States and internationally, including mass merchandisers, baby superstores, specialty stores, department stores, and boutiques. The company was formerly known as Russ Berrie and Company, Inc. and changed its name to Kid Brands, Inc. in September 2009. Kid Brands, Inc. was founded in 1963 and is headquartered in Rutherford, New Jersey. On June 18, 2014, Kid Brands, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.

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.