Super Micro Computer (NASDAQ:SMCI) vs. Turtle Beach (NASDAQ:TBCH) Financial Analysis

Turtle Beach (NASDAQ:TBCH) and Super Micro Computer (NASDAQ:SMCI) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings for Turtle Beach and Super Micro Computer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	1	2	3	1	2.57
Super Micro Computer	3	11	4	1	2.16

Turtle Beach currently has a consensus target price of $15.80, indicating a potential downside of 5.56%. Super Micro Computer has a consensus target price of $41.29, indicating a potential upside of 35.67%. Given Super Micro Computer’s higher probable upside, analysts plainly believe Super Micro Computer is more favorable than Turtle Beach.

Risk and Volatility

Turtle Beach has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, Super Micro Computer has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

Insider & Institutional Ownership

67.0% of Turtle Beach shares are held by institutional investors. Comparatively, 84.1% of Super Micro Computer shares are held by institutional investors. 3.4% of Turtle Beach shares are held by company insiders. Comparatively, 16.1% of Super Micro Computer shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Turtle Beach and Super Micro Computer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Turtle Beach	-0.17%	0.58%	0.25%
Super Micro Computer	6.77%	38.97%	12.20%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Turtle Beach	$302.02 million	0.99	$15.73 million	($0.05)	-334.60
Super Micro Computer	$53.99 billion	0.37	$2.23 billion	$4.69	6.49

Super Micro Computer has higher revenue and earnings than Turtle Beach. Turtle Beach is trading at a lower price-to-earnings ratio than Super Micro Computer, indicating that it is currently the more affordable of the two stocks.

Summary

Super Micro Computer beats Turtle Beach on 11 of the 14 factors compared between the two stocks.

About Turtle Beach

Turtle Beach Corporation (NASDAQ: TBCH) develops and markets gaming accessories and related consumer technology products. Its portfolio includes gaming headsets, controllers, keyboards, mice, microphones, and other accessories designed for use with consoles, PCs, and mobile devices. The company also offers products for flight simulation and other gaming applications. The company’s products are sold under the Turtle Beach brand and, following its acquisition of Performance Designed Products, under brands including PDP.

About Super Micro Computer

Super Micro Computer, Inc. designs and sells server and storage systems, networking equipment, and related software and services. Its offerings include systems for data centers, cloud computing, enterprise applications, high-performance computing, artificial intelligence, and edge computing. The company emphasizes application-optimized solutions, including integrated rack-scale systems that combine computing, storage, networking, and management tools. It also provides system configuration, deployment, and support services.