Comparing Turtle Beach (TBCH) and The Competition

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

Risk & Volatility

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

Profitability

This table compares Turtle Beach and its peers’ 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%

Institutional & 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 company insiders. Comparatively, 13.0% of shares of all “Communications equipment, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Turtle Beach and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Turtle Beach	$372.77 million	-$17.68 million	18.34
Turtle Beach Competitors	$399.63 million	-$90.17 million	22.72

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

Analyst Ratings

This is a summary of recent ratings and price targets for Turtle Beach and its peers, 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	227	485	1020	50	2.50

Turtle Beach presently has a consensus price target of $21.00, indicating a potential upside of 48.73%. As a group, “Communications equipment, not elsewhere classified” companies have a potential upside of 36.99%. Given Turtle Beach’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Turtle Beach is more favorable than its peers.

Summary

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

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.