Financial Comparison: Turtle Beach (TBCH) versus Its Competitors

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 rivals? We will compare Turtle Beach to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, risk, profitability, earnings and valuation.

Profitability

This table compares Turtle Beach and its rivals’ 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%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	0	0	2	0	3.00
Turtle Beach Competitors	229	486	1025	50	2.50

Turtle Beach presently has a consensus target price of $22.00, indicating a potential upside of 109.32%. As a group, “Communications equipment, not elsewhere classified” companies have a potential upside of 55.03%. Given Turtle Beach’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Turtle Beach is more favorable than its rivals.

Valuation and Earnings

This table compares Turtle Beach and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Turtle Beach	$372.77 million	-$17.68 million	13.65
Turtle Beach Competitors	$399.59 million	-$90.17 million	8.56

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

Risk & Volatility

Turtle Beach has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500. Comparatively, Turtle Beach’s rivals have a beta of -8.07, suggesting that their average stock price is 907% less volatile than the S&P 500.

Institutional & Insider Ownership

67.0% of Turtle Beach shares are held by institutional investors. Comparatively, 37.4% of shares of all “Communications equipment, not elsewhere classified” companies are held by institutional investors. 5.1% of Turtle Beach shares are held by insiders. Comparatively, 13.0% of shares of all “Communications equipment, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Turtle Beach beats its rivals 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.