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FNKO vs. UNICY: Which Stock Should Value Investors Buy Now?

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Investors interested in Consumer Products - Discretionary stocks are likely familiar with 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.

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 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.

Right now, both Funko, Inc. and UNICHARM CORP are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

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 27.25, while UNICY has a forward P/E of 32.92. We also note that FNKO has a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UNICY currently has a PEG ratio of 3.29.

Another notable valuation metric for FNKO is its P/B ratio of 3.08. 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 4.82.

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

Both FNKO and UNICY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FNKO is the superior value option right now.


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