Head to Head Review: Funko (NASDAQ:FNKO) vs. Interactive Strength (NASDAQ:TRNR)

Funko (NASDAQ:FNKO) and Interactive Strength (NASDAQ:TRNR) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Funko and Interactive Strength’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Funko	0.49%	6.48%	1.82%
Interactive Strength	-159.24%	-469.40%	-52.97%

Risk and Volatility

Funko has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Interactive Strength has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Funko and Interactive Strength, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	0	3	1	0	2.25
Interactive Strength	1	0	0	0	1.00

Funko presently has a consensus target price of $7.08, suggesting a potential upside of 2.51%. Interactive Strength has a consensus target price of $157.50, suggesting a potential upside of 13,247.46%. Given Interactive Strength’s higher possible upside, analysts plainly believe Interactive Strength is more favorable than Funko.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$940.08 million	0.41	-$67.36 million	$0.07	98.71
Interactive Strength	$11.53 million	0.17	-$23.97 million	($306.87)	-0.00

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

Institutional & Insider Ownership

99.2% of Funko shares are held by institutional investors. Comparatively, 0.6% of Interactive Strength shares are held by institutional investors. 3.9% of Funko shares are held by insiders. Comparatively, 0.1% of Interactive Strength shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Funko beats Interactive Strength on 12 of the 14 factors compared between the two stocks.

About Funko

Funko is a pop culture consumer products company that designs, sources and distributes collectibles and other products based on licensed characters, franchises and brands. Its best-known products include Pop! vinyl figures, along with plush toys, action figures, apparel and games. The company also sells accessories and bags through its Loungefly brand. Its products draw on properties from entertainment, sports and other areas of popular culture, and are sold through retailers, specialty stores and online channels in the United States and internationally.

About Interactive Strength

Interactive Strength Inc. is a connected fitness and wellness company that develops, manufactures and sells technology-enabled exercise equipment and related digital fitness experiences. The company focuses on combining hardware, software and subscription-based content to support strength training, cardiovascular exercise and overall physical wellness. Interactive Strength operates through fitness brands including FORME and CLMBR. FORME offers connected home strength-training systems and digital workout content, while CLMBR develops connected vertical climbing machines designed to provide full-body cardiovascular and resistance training.