Critical Comparison: Turtle Beach (TBCH) versus The Competition

Turtle Beach (NASDAQ:TBCH) is one of 41 public companies in the “Communications equipment, not elsewhere classified” industry, but how does it contrast to its competitors? We will compare Turtle Beach to related businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Volatility & Risk

Turtle Beach has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Turtle Beach’s competitors have a beta of -8.06, suggesting that their average stock price is 906% less volatile than the S&P 500.

Institutional and Insider Ownership

67.0% of Turtle Beach shares are owned by institutional investors. Comparatively, 37.4% of shares of all “Communications equipment, not elsewhere classified” companies are owned by institutional investors. 5.1% of Turtle Beach shares are owned by insiders. Comparatively, 14.3% of shares of all “Communications equipment, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Turtle Beach and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	0	0	1	0	3.00
Turtle Beach Competitors	225	483	1017	49	2.50

Turtle Beach currently has a consensus price target of $21.00, indicating a potential upside of 44.23%. As a group, “Communications equipment, not elsewhere classified” companies have a potential upside of 32.35%. Given Turtle Beach’s stronger consensus rating and higher probable upside, research analysts clearly believe Turtle Beach is more favorable than its competitors.

Profitability

This table compares Turtle Beach and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Turtle Beach	1.41%	9.18%	3.88%
Turtle Beach Competitors	-18.70%	-50.08%	-5.05%

Valuation and Earnings

This table compares Turtle Beach and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Turtle Beach	$372.77 million	-$17.68 million	18.91
Turtle Beach Competitors	$399.78 million	-$90.17 million	22.61

Turtle Beach’s competitors have higher revenue, but lower earnings than Turtle Beach. Turtle Beach is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Turtle Beach beats its competitors on 10 of the 13 factors compared.

Turtle Beach Company Profile

Turtle Beach Corporation operates as an audio technology company. It develops, commercializes, and markets gaming headset solutions for various platforms, including video game and entertainment consoles, personal computers, handheld consoles, tablets, and mobile devices under the Turtle Beach brand. The company also offers gaming headsets, keyboards, mice, mousepads, and other accessories for the personal computer peripherals market under the brand of ROCCAT, as well as digital USB and analog microphones under the Neat Microphones brand. It serves retailers, distributors, and other customers in North America, the United Kingdom, Europe, and internationally. The company was founded in 1975 and is headquartered in White Plains, New York.