Turtle Beach (NASDAQ:TBCH) and UTStarcom (NASDAQ:UTSI) Financial Comparison

UTStarcom (NASDAQ:UTSI) and Turtle Beach (NASDAQ:TBCH) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Institutional & Insider Ownership

1.8% of UTStarcom shares are held by institutional investors. Comparatively, 67.0% of Turtle Beach shares are held by institutional investors. 2.7% of UTStarcom shares are held by company insiders. Comparatively, 5.1% of Turtle Beach shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UTStarcom	N/A	N/A	N/A
Turtle Beach	1.41%	9.18%	3.88%

Analyst Ratings

This is a summary of current ratings and price targets for UTStarcom and Turtle Beach, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UTStarcom	0	0	0	0	0.00
Turtle Beach	0	0	1	0	3.00

Turtle Beach has a consensus target price of $21.00, indicating a potential upside of 48.73%. Given Turtle Beach’s stronger consensus rating and higher probable upside, analysts plainly believe Turtle Beach is more favorable than UTStarcom.

Risk and Volatility

UTStarcom has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Turtle Beach has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Earnings & Valuation

This table compares UTStarcom 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
UTStarcom	$10.88 million	2.06	-$3.85 million	N/A	N/A
Turtle Beach	$372.77 million	0.76	-$17.68 million	$0.77	18.34

UTStarcom has higher earnings, but lower revenue than Turtle Beach.

Summary

Turtle Beach beats UTStarcom on 10 of the 12 factors compared between the two stocks.

About UTStarcom

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications in China, India, Japan, and internationally. Its products include converged packet transport, disaggregated router platform, packet transport network, packet aggregation network, multi-services access network, fiber to the X, carrier Wi-Fi solutions, and software defined network controller products. The company also offers packet optical and network synchronization products. It serves telecommunications operators and equipment distributors. The company was founded in 1991 and is based in Hangzhou, the People's Republic of China.

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.