Analyzing Turtle Beach (NASDAQ:TBCH) & UTStarcom (NASDAQ:UTSI)

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

Insider & Institutional Ownership

67.0% of Turtle Beach shares are owned by institutional investors. Comparatively, 1.8% of UTStarcom shares are owned by institutional investors. 5.1% of Turtle Beach shares are owned by insiders. Comparatively, 2.7% of UTStarcom shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

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

Valuation and Earnings

This table compares Turtle Beach and UTStarcom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Turtle Beach	$372.77 million	0.81	-$17.68 million	$0.77	19.56
UTStarcom	$10.88 million	2.08	-$3.85 million	N/A	N/A

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Turtle Beach and UTStarcom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	0	0	2	0	3.00
UTStarcom	0	0	0	0	0.00

Turtle Beach presently has a consensus target price of $22.00, indicating a potential upside of 46.08%. Given Turtle Beach’s stronger consensus rating and higher possible upside, equities analysts plainly believe Turtle Beach is more favorable than UTStarcom.

Profitability

This table compares Turtle Beach and UTStarcom’s 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%
UTStarcom	N/A	N/A	N/A

Summary

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

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.

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.