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

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Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Funko-A has a Zacks Rank of #1 (Strong Buy), while VIZIO Holding 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 only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

FNKO currently has a forward P/E ratio of 9.87, while VZIO has a forward P/E of 5,022. We also note that FNKO has a PEG ratio of 0.24. 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 200.88.

Another notable valuation metric for FNKO is its P/B ratio of 2.27. 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 4.81.

These metrics, and several others, help FNKO earn a Value grade of B, while VZIO has been given a 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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