Analyzing Maison Solutions (NASDAQ:MSS) and Funko (NASDAQ:FNKO)

Funko (NASDAQ:FNKO) and Maison Solutions (NASDAQ:MSS) 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, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

99.2% of Funko shares are held by institutional investors. Comparatively, 2.4% of Maison Solutions shares are held by institutional investors. 3.3% of Funko shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Funko has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Maison Solutions has a beta of 5.06, indicating that its share price is 406% more volatile than the S&P 500.

Profitability

This table compares Funko and Maison Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Funko	-6.72%	-19.97%	-6.15%
Maison Solutions	-0.88%	-2.83%	-0.40%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Funko and Maison Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Funko	1	2	1	0	2.00
Maison Solutions	1	0	1	0	2.00

Funko presently has a consensus price target of $7.17, suggesting a potential upside of 115.22%. Maison Solutions has a consensus price target of $4.25, suggesting a potential upside of 316.67%. Given Maison Solutions’ higher possible upside, analysts plainly believe Maison Solutions is more favorable than Funko.

Earnings & Valuation

This table compares Funko and Maison Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Funko	$970.70 million	0.19	-$14.72 million	($1.21)	-2.75
Maison Solutions	$124.22 million	0.16	$1.17 million	($0.04)	-25.50

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

Summary

Maison Solutions beats Funko on 7 of the 12 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 Maison Solutions

Maison Solutions Inc., together with its subsidiaries, operates as the specialty grocery retailer in California. The company offers perishable products, such as meat, seafood, vegetables, and fruit; non-perishable products, including grocery products comprising cooking utensils, canned foods, Chinese and Asian seasonings and spices, and snacks, as well as liquor, cigarette, lottery, newspaper, reusable bag, non-food, and health products, and general merchandise, beauty care, pharmacy, fuel, and other items and services in its stores. It also offers its products online. The company was formerly known as Maison International, Inc. and changed its name to Maison Solutions Inc. in September 2021. Maison Solutions Inc. was incorporated in 2019 and is based in Monterey Park, California.