Funko (NASDAQ:FNKO – Get Free Report) and Peloton Interactive (NASDAQ:PTON – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Funko and Peloton Interactive”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Funko | $908.21 million | 0.41 | -$67.36 million | ($0.04) | -168.25 |
| Peloton Interactive | $2.45 billion | 0.97 | $63.20 million | $0.12 | 44.83 |
Risk & Volatility
Funko has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Funko and Peloton Interactive, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Funko | 1 | 1 | 1 | 0 | 2.00 |
| Peloton Interactive | 1 | 7 | 5 | 0 | 2.31 |
Funko presently has a consensus target price of $7.08, suggesting a potential upside of 5.25%. Peloton Interactive has a consensus target price of $7.94, suggesting a potential upside of 47.67%. Given Peloton Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe Peloton Interactive is more favorable than Funko.
Profitability
This table compares Funko and Peloton Interactive’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% |
| Peloton Interactive | 2.58% | -23.92% | 3.00% |
Insider and Institutional Ownership
99.2% of Funko shares are held by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are held by institutional investors. 3.9% of Funko shares are held by company insiders. Comparatively, 1.3% of Peloton Interactive shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Peloton Interactive beats Funko on 11 of the 14 factors compared between 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 Peloton Interactive
Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.
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