Reviewing Turtle Beach (TBCH) & Its Peers

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 related companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

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%

Institutional and 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 company insiders. Comparatively, 14.3% of shares of all “Communications equipment, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Turtle Beach and its competitors, as provided 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	225	481	1015	49	2.50

Turtle Beach currently has a consensus price target of $21.00, indicating a potential upside of 47.99%. As a group, “Communications equipment, not elsewhere classified” companies have a potential upside of 31.43%. Given Turtle Beach’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Turtle Beach is more favorable than its competitors.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Turtle Beach	$326.23 million	-$17.68 million	18.43
Turtle Beach Competitors	$398.06 million	-$90.17 million	22.58

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.

Volatility & Risk

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

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.