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FNKO vs. VZIO: Which Stock Is the Better Value Option?

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Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both 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.

Currently, Funko-A has a Zacks Rank of #1 (Strong Buy), while VIZIO Holding Corp. has a Zacks Rank of #3 (Hold). This means that FNKO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

FNKO currently has a forward P/E ratio of 9.53, while VZIO has a forward P/E of 282. 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 11.28.

Another notable valuation metric for FNKO is its P/B ratio of 2.19. 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 4.59.

These are just a few of the metrics contributing to FNKO's Value grade of B and VZIO's Value grade of D.

FNKO has seen stronger estimate revision activity and sports more attractive valuation metrics than VZIO, so it seems like value investors will conclude that FNKO is the superior option right now.


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