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

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Super Micro Computer and Turtle Beach, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Micro Computer	2	12	4	0	2.11
Turtle Beach	1	2	3	1	2.57

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

Insider and Institutional Ownership

84.1% of Super Micro Computer shares are owned by institutional investors. Comparatively, 67.0% of Turtle Beach shares are owned by institutional investors. 16.1% of Super Micro Computer shares are owned by insiders. Comparatively, 3.4% of Turtle Beach shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Super Micro Computer	5.71%	27.83%	9.11%
Turtle Beach	-1.07%	-2.26%	-1.00%

Earnings and Valuation

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

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

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.

Risk & Volatility

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

Summary

Super Micro Computer beats Turtle Beach on 11 of the 15 factors compared between the two stocks.

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.

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.