Critical Analysis: Turtle Beach (TBCH) vs. Its Rivals

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

Volatility and Risk

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

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Turtle Beach	$372.77 million	-$17.68 million	19.06
Turtle Beach Competitors	$399.78 million	-$90.17 million	22.87

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.

Analyst Recommendations

This is a summary of current ratings and price targets for Turtle Beach and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	0	0	1	0	3.00
Turtle Beach Competitors	225	483	1019	50	2.50

Turtle Beach presently has a consensus target price of $21.00, suggesting a potential upside of 43.05%. As a group, “Communications equipment, not elsewhere classified” companies have a potential upside of 26.82%. Given Turtle Beach’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Turtle Beach is more favorable than its competitors.

Insider & Institutional 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, 14.4% of shares of all “Communications equipment, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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%

Summary

Turtle Beach beats its competitors 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.