Turtle Beach (TBCH) versus The Competition Critical Review

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

Insider & Institutional 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, 13.0% of shares of all “Communications equipment, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Turtle Beach and its peers, 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	485	1024	50	2.50

Turtle Beach presently has a consensus price target 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 possible upside, equities analysts plainly believe Turtle Beach is more favorable than its peers.

Volatility and Risk

Turtle Beach has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500. Comparatively, Turtle Beach’s peers have a beta of -8.04, indicating that their average stock price is 904% less volatile than the S&P 500.

Profitability

This table compares Turtle Beach and its peers’ 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%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Turtle Beach	$372.77 million	-$17.68 million	13.65
Turtle Beach Competitors	$399.63 million	-$90.17 million	8.56

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

Summary

Turtle Beach beats its peers on 10 of the 13 factors compared.

Turtle Beach Company Profile

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.