Head to Head Survey: Funko (NASDAQ:FNKO) versus Polaris (NYSE:PII)

Polaris (NYSE:PII) and Funko (NASDAQ:FNKO) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Polaris and Funko, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polaris	1	11	1	0	2.00
Funko	1	2	1	0	2.00

Polaris presently has a consensus target price of $62.38, indicating a potential upside of 4.90%. Funko has a consensus target price of $7.08, indicating a potential upside of 11.20%. Given Funko’s higher probable upside, analysts clearly believe Funko is more favorable than Polaris.

Volatility & Risk

Polaris has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Funko has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares Polaris and Funko”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polaris	$7.15 billion	0.47	-$465.50 million	($3.69)	-16.11
Funko	$908.21 million	0.39	-$67.36 million	($0.04)	-159.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Polaris	-2.70%	23.19%	3.73%
Funko	-0.21%	2.61%	0.71%

Institutional & Insider Ownership

88.1% of Polaris shares are owned by institutional investors. Comparatively, 99.2% of Funko shares are owned by institutional investors. 2.4% of Polaris shares are owned by company insiders. Comparatively, 3.9% of Funko shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

About Polaris

Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.

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.