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

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Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Funko, Inc. (FNKO - Free Report) and UNICHARM CORP (UNICY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Inc. has a Zacks Rank of #2 (Buy), while UNICHARM 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 only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 28.68, while UNICY has a forward P/E of 32.79. We also note that FNKO has a PEG ratio of 1.16. 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. UNICY currently has a PEG ratio of 3.28.

Another notable valuation metric for FNKO is its P/B ratio of 3.25. 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, UNICY has a P/B of 4.80.

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

FNKO stands above UNICY 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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