Head-To-Head Analysis: Funko (NASDAQ:FNKO) vs. Latham Group (NASDAQ:SWIM)

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

Institutional and Insider Ownership

84.0% of Latham Group shares are held by institutional investors. Comparatively, 99.2% of Funko shares are held by institutional investors. 3.3% of Latham Group shares are held by company insiders. Comparatively, 3.9% of Funko shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Latham Group 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
Latham Group	$545.91 million	1.23	$11.12 million	$0.07	81.43
Funko	$908.21 million	0.35	-$67.36 million	($1.05)	-5.49

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

Risk and Volatility

Latham Group has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Funko has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Latham Group and Funko, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	2	3	2	0	2.00
Funko	1	1	0	0	1.50

Latham Group currently has a consensus price target of $7.50, indicating a potential upside of 31.58%. Funko has a consensus price target of $6.25, indicating a potential upside of 8.51%. Given Latham Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Latham Group is more favorable than Funko.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Latham Group	1.55%	2.13%	1.02%
Funko	-6.30%	-21.03%	-5.61%

Summary

Latham Group beats Funko on 11 of the 14 factors compared between the two stocks.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

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.