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FNKO or VZIO: Which Is the Better Value Stock Right Now?

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Investors interested in Consumer Products - Discretionary stocks are likely familiar with Funko-A (FNKO - Free Report) and VIZIO Holding Corp. (VZIO - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Funko-A and VIZIO Holding Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FNKO has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

FNKO currently has a forward P/E ratio of 9.85, while VZIO has a forward P/E of 265.64. We also note that FNKO has a PEG ratio of 0.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VZIO currently has a PEG ratio of 10.63.

Another notable valuation metric for FNKO is its P/B ratio of 2.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VZIO has a P/B of 5.60.

These metrics, and several others, help FNKO earn a Value grade of B, while VZIO has been given a Value grade of D.

FNKO stands above VZIO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FNKO is the superior value option right now.


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