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

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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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Funko-A is sporting a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that FNKO likely has seen a stronger improvement to its earnings outlook than VZIO has recently. But this is just one factor that value investors are interested in.

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 11.81, while VZIO has a forward P/E of 260.40. We also note that FNKO has a PEG ratio of 0.57. 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 10.42.

Another notable valuation metric for FNKO is its P/B ratio of 2.73. 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, VZIO has a P/B of 5.18.

Based on these metrics and many more, FNKO holds a Value grade of B, while VZIO has a Value grade of C.

FNKO has seen stronger estimate revision activity and sports more attractive valuation metrics than VZIO, so it seems like value investors will conclude that FNKO is the superior option right now.


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Funko, Inc. (FNKO) - free report >>

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