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

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Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Funko, Inc. (FNKO - Free Report) or 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Funko, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while UNICHARM CORP has a Zacks Rank of #3 (Hold). 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 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

FNKO currently has a forward P/E ratio of 16.37, while UNICY has a forward P/E of 32. We also note that FNKO has a PEG ratio of 0.79. 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 3.56.

Another notable valuation metric for FNKO is its P/B ratio of 3.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, UNICY has a P/B of 4.01.

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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