Analyzing Super Micro Computer (NASDAQ:SMCI) and Turtle Beach (NASDAQ:TBCH)

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

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations 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	2	12	4	0	2.11

Turtle Beach presently has a consensus price target of $15.80, suggesting a potential upside of 4.02%. Super Micro Computer has a consensus price target of $43.08, suggesting a potential upside of 49.78%. Given Super Micro Computer’s higher probable upside, analysts plainly believe Super Micro Computer is more favorable than Turtle Beach.

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, hedge funds and large money managers 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	-1.07%	-2.26%	-1.00%
Super Micro Computer	5.71%	27.83%	9.11%

Earnings and Valuation

This table compares Turtle Beach and Super Micro Computer”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Turtle Beach	$319.91 million	0.85	$15.73 million	($0.21)	-72.33
Super Micro Computer	$39.06 billion	0.48	$2.23 billion	$4.69	6.13

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 15 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 Super Micro Computer

Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.