Head to Head Contrast: Mastercraft Boat (NASDAQ:MCFT) and Funko (NASDAQ:FNKO)

Funko (NASDAQ:FNKO) and Mastercraft Boat (NASDAQ:MCFT) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

99.2% of Funko shares are owned by institutional investors. Comparatively, 97.6% of Mastercraft Boat shares are owned by institutional investors. 3.9% of Funko shares are owned by insiders. Comparatively, 2.5% of Mastercraft Boat shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Funko and Mastercraft Boat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	1	2	1	0	2.00
Mastercraft Boat	0	6	0	0	2.00

Funko presently has a consensus target price of $7.08, suggesting a potential upside of 29.61%. Mastercraft Boat has a consensus target price of $25.00, suggesting a potential upside of 27.24%. Given Funko’s higher probable upside, research analysts clearly believe Funko is more favorable than Mastercraft Boat.

Risk and Volatility

Funko has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Mastercraft Boat has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares Funko and Mastercraft Boat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Funko	-0.21%	2.61%	0.71%
Mastercraft Boat	3.72%	10.56%	7.47%

Earnings and Valuation

This table compares Funko and Mastercraft Boat”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$908.21 million	0.34	-$67.36 million	($0.04)	-136.62
Mastercraft Boat	$298.48 million	1.07	$7.04 million	$0.68	28.89

Mastercraft Boat has lower revenue, but higher earnings than Funko. Funko is trading at a lower price-to-earnings ratio than Mastercraft Boat, indicating that it is currently the more affordable of the two stocks.

Summary

Mastercraft Boat beats Funko on 8 of the 13 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 Mastercraft Boat

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.