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PCMI or FNKO: 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 PCM and Funko, Inc. (FNKO - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, PCM has a Zacks Rank of #2 (Buy), while Funko, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PCMI likely has seen a stronger improvement to its earnings outlook than FNKO has recently. But this is only part of the picture for value investors.

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.

PCMI currently has a forward P/E ratio of 11.15, while FNKO has a forward P/E of 19.06. We also note that PCMI has a PEG ratio of 0.56. 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. FNKO currently has a PEG ratio of 1.04.

Another notable valuation metric for PCMI is its P/B ratio of 2.25. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FNKO has a P/B of 3.56.

These are just a few of the metrics contributing to PCMI's Value grade of A and FNKO's Value grade of C.

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


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