Analyzing American Outdoor Brands (NASDAQ:AOUT) and Funko (NASDAQ:FNKO)

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

Insider & Institutional Ownership

99.2% of Funko shares are held by institutional investors. Comparatively, 49.9% of American Outdoor Brands shares are held by institutional investors. 3.9% of Funko shares are held by company insiders. Comparatively, 5.3% of American Outdoor Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Funko and American Outdoor Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Funko	-0.21%	2.64%	0.71%
American Outdoor Brands	-4.83%	0.67%	0.48%

Valuation & Earnings

This table compares Funko and American Outdoor Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$908.21 million	0.37	-$67.36 million	($0.04)	-150.92
American Outdoor Brands	$190.54 million	0.83	-$9.21 million	($0.73)	-17.31

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

Volatility and Risk

Funko has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Funko and American Outdoor Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	1	1	1	0	2.00
American Outdoor Brands	1	0	2	1	2.75

Funko currently has a consensus price target of $7.08, suggesting a potential upside of 17.33%. American Outdoor Brands has a consensus price target of $14.25, suggesting a potential upside of 12.78%. Given Funko’s higher possible upside, equities research analysts clearly believe Funko is more favorable than American Outdoor Brands.

Summary

Funko beats American Outdoor Brands on 8 of the 15 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 American Outdoor Brands

American Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. In addition, it offers electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. The company sells its products through e-commerce and traditional distribution channels under the Adventurer, Harvester, Marksman, and Defender brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.