Financial Survey: Hauppauge Digital (OTCMKTS:HAUP) versus Turtle Beach (NASDAQ:TBCH)

Hauppauge Digital (OTCMKTS:HAUP) and Turtle Beach (NASDAQ:TBCH) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hauppauge Digital and Turtle Beach, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hauppauge Digital	0	0	0	0	0.00
Turtle Beach	0	1	1	0	2.50

Turtle Beach has a consensus target price of $12.50, suggesting a potential downside of 3.18%. Given Turtle Beach’s stronger consensus rating and higher probable upside, analysts plainly believe Turtle Beach is more favorable than Hauppauge Digital.

Earnings & Valuation

This table compares Hauppauge Digital and Turtle Beach”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hauppauge Digital	N/A	N/A	N/A	N/A	N/A
Turtle Beach	$372.77 million	0.70	$16.18 million	$0.73	17.68

Turtle Beach has higher revenue and earnings than Hauppauge Digital.

Profitability

This table compares Hauppauge Digital and Turtle Beach’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hauppauge Digital	N/A	N/A	N/A
Turtle Beach	4.03%	15.59%	6.22%

Volatility and Risk

Hauppauge Digital has a beta of -6.31, suggesting that its stock price is 731% less volatile than the S&P 500. Comparatively, Turtle Beach has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.

Insider & Institutional Ownership

67.0% of Turtle Beach shares are held by institutional investors. 13.0% of Hauppauge Digital shares are held by insiders. Comparatively, 3.3% of Turtle Beach shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Turtle Beach beats Hauppauge Digital on 9 of the 10 factors compared between the two stocks.

About Hauppauge Digital

Hauppauge Digital Inc. designs, develops, manufactures, and markets various consumer electronic hardware and software products that link TV and other video delivery technologies to personal computers and mobile devices. The company offers TV receivers and tuners, including Broadway that connects to a TV signal and then transmits that TV signal through a Wi-Fi network or the Internet; digital TV receivers and hybrid analog/digital TV receivers, which enable a PC user to watch digital television in a resizable window on a PC or laptop screen; PCTV systems TV tuner products that allow users to view television programming on their computers; and analog TV tuners. It also provides video recorder products, such as USB-Live2, a standard definition video recorder used to record video tapes and other types of video into a PC; HD PVR 2, a kit for gamers to record high definition videos; HD PVR, a high-definition video recorder for making compressed video recordings, as well as to record old home video tapes into an AVCHD format; and Colossus to record high definition video from a cable TV or satellite set top box. In addition, the company offers other software products comprising WinTV application, a PC based TV watching, pause, and recoding application; WinTV Extend software product, a PC based Internet video server that streams live TV or other video content to remote devices; Impact video capture board for PC based video conferencing and video capture in industrial applications; MediaMVP-HD, a Linux-based digital media device that link TV sets and PCs; and MediaMVP to watch and listen to PC-based videos, music, and pictures on a TV set through a home network, as well as provides an on-TV-screen display of media directory listings. The company sells its products through retailers, PC manufacturers, and distributors in the Americas, Europe, and Asia. Hauppauge Digital Inc. was founded in 1994 and is headquartered in Hauppauge, New York.

About Turtle Beach

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.