Olaplex (NASDAQ:OLPX – Get Free Report) and Funko (NASDAQ:FNKO – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Insider and Institutional Ownership
87.4% of Olaplex shares are owned by institutional investors. Comparatively, 99.2% of Funko shares are owned by institutional investors. 4.8% of Olaplex shares are owned by insiders. Comparatively, 3.3% of Funko shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Olaplex 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 | |
| Olaplex | $422.96 million | 3.26 | -$9.25 million | ($0.02) | -102.50 |
| Funko | $908.21 million | 0.34 | -$67.36 million | ($1.05) | -5.22 |
Olaplex has higher earnings, but lower revenue than Funko. Olaplex is trading at a lower price-to-earnings ratio than Funko, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Olaplex has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Funko has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Olaplex and Funko, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Olaplex | 1 | 5 | 1 | 0 | 2.00 |
| Funko | 1 | 1 | 1 | 0 | 2.00 |
Olaplex presently has a consensus target price of $1.92, indicating a potential downside of 6.20%. Funko has a consensus target price of $6.50, indicating a potential upside of 18.61%. Given Funko’s higher possible upside, analysts plainly believe Funko is more favorable than Olaplex.
Profitability
This table compares Olaplex and Funko’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Olaplex | -3.53% | 2.23% | 1.31% |
| Funko | -6.30% | -21.03% | -5.61% |
Summary
Olaplex beats Funko on 8 of the 12 factors compared between the two stocks.
About Olaplex
Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.
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.
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