Johnson Outdoors (NASDAQ:JOUT – Get Free Report) and Funko (NASDAQ:FNKO – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Risk and Volatility
Johnson Outdoors has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Funko has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Profitability
This table compares Johnson Outdoors and Funko’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Johnson Outdoors | -1.21% | 4.26% | 2.90% |
| Funko | -0.21% | 2.61% | 0.71% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Johnson Outdoors | 1 | 1 | 0 | 0 | 1.50 |
| Funko | 1 | 2 | 1 | 0 | 2.00 |
Funko has a consensus price target of $7.08, suggesting a potential upside of 9.99%. Given Funko’s stronger consensus rating and higher probable upside, analysts clearly believe Funko is more favorable than Johnson Outdoors.
Earnings & Valuation
This table compares Johnson Outdoors and Funko”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Johnson Outdoors | $660.91 million | 0.68 | -$34.29 million | ($0.85) | -50.31 |
| Funko | $908.21 million | 0.40 | -$67.36 million | ($0.04) | -161.00 |
Johnson Outdoors has higher earnings, but lower revenue than Funko. Funko is trading at a lower price-to-earnings ratio than Johnson Outdoors, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
64.1% of Johnson Outdoors shares are owned by institutional investors. Comparatively, 99.2% of Funko shares are owned by institutional investors. 28.2% of Johnson Outdoors shares are owned by company insiders. Comparatively, 3.9% of Funko shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Funko beats Johnson Outdoors on 8 of the 14 factors compared between the two stocks.
About Johnson Outdoors
Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide. It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving. The Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing. This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors. The Camping segment provides consumer, commercial, and military tents and accessories; camping stoves; other recreational camping products; and portable outdoor cooking systems. This segment sells its products under the Eureka! and Jetboil brands through specialty stores, sporting goods stores, internet retailers, and direct to consumers. The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under Old Town and Carlisle brands. The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name. This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, and public safety units. It sells its products through websites. The company was founded in 1970 and is headquartered in Racine, Wisconsin.
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.
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