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FNKO vs. VZIO: Which Stock Is the Better Value Option?
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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 is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Funko-A has a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FNKO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 9.93, while VZIO has a forward P/E of 258. We also note that FNKO has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VZIO currently has a PEG ratio of 10.32.
Another notable valuation metric for FNKO is its P/B ratio of 2.29. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, VZIO has a P/B of 5.01.
These are just a few of the metrics contributing to FNKO's Value grade of A and VZIO's Value grade of D.
FNKO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FNKO is likely the superior value option right now.
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FNKO vs. VZIO: Which Stock Is the Better Value Option?
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 is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Funko-A has a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FNKO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 9.93, while VZIO has a forward P/E of 258. We also note that FNKO has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VZIO currently has a PEG ratio of 10.32.
Another notable valuation metric for FNKO is its P/B ratio of 2.29. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, VZIO has a P/B of 5.01.
These are just a few of the metrics contributing to FNKO's Value grade of A and VZIO's Value grade of D.
FNKO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FNKO is likely the superior value option right now.