Funko (NASDAQ:FNKO – Get Free Report) and Foxx Development (NASDAQ:FOXX – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Risk & Volatility
Funko has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Foxx Development has a beta of -0.21, meaning that its stock price is 121% less volatile than the S&P 500.
Earnings and Valuation
This table compares Funko and Foxx Development”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Funko | $1.05 billion | 0.27 | -$14.72 million | ($1.27) | -4.02 |
| Foxx Development | $65.92 million | 0.53 | -$9.02 million | ($2.26) | -2.20 |
Foxx Development has lower revenue, but higher earnings than Funko. Funko is trading at a lower price-to-earnings ratio than Foxx Development, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
99.2% of Funko shares are held by institutional investors. Comparatively, 60.4% of Foxx Development shares are held by institutional investors. 3.3% of Funko shares are held by company insiders. Comparatively, 31.6% of Foxx Development shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Funko and Foxx Development, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Funko | 1 | 1 | 1 | 0 | 2.00 |
| Foxx Development | 1 | 0 | 0 | 0 | 1.00 |
Funko presently has a consensus price target of $4.75, indicating a potential downside of 6.86%. Given Funko’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Funko is more favorable than Foxx Development.
Profitability
This table compares Funko and Foxx Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Funko | -7.39% | -23.66% | -7.02% |
| Foxx Development | -24.62% | N/A | -40.69% |
Summary
Funko beats Foxx Development on 9 of the 14 factors compared between the two stocks.
About Funko
Funko, Inc., a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally. The company provides media and entertainment content, including movies, television (TV) shows, video games, music, and sports; figures, handbags, backpacks, wallets, apparel, accessories, plush products, homewares, and digital non-fungible tokens; and art prints and vinyl records, posters, soundtracks, toys, books, games, and other collectibles. It markets its products under the Pop!, Loungefly, Funko, Mystery Minis, Bitty Pop!, Funko action figures, Funko Plush, and Funko Soda brand names; and licenses its properties under the classic evergreen, movie release, current TV, and current video game categories. The company sells its products through specialty retailers, mass-market retailers, e-commerce sites, and distributors; and at specialty licensing and comic book shows, conventions, and exhibitions, as well as through its e-commerce business. Funko, Inc. was incorporated in 2017 and is headquartered in Everett, Washington.
About Foxx Development
Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.
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