Turtle Beach (NASDAQ:TBCH) & Telkonet (OTCMKTS:TKOI) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Turtle Beach	5.53%	18.23%	7.63%
Telkonet	N/A	N/A	N/A

Institutional & Insider Ownership

67.0% of Turtle Beach shares are held by institutional investors. 3.3% of Turtle Beach shares are held by company insiders. Comparatively, 55.3% of Telkonet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Turtle Beach and Telkonet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	1	1	3	0	2.40
Telkonet	0	0	0	0	0.00

Turtle Beach presently has a consensus target price of $17.38, suggesting a potential upside of 12.24%. Given Turtle Beach’s stronger consensus rating and higher probable upside, research analysts clearly believe Turtle Beach is more favorable than Telkonet.

Valuation and Earnings

This table compares Turtle Beach and Telkonet”s gross 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	0.82	$16.18 million	$0.94	16.47
Telkonet	$8.90 million	0.25	-$1.19 million	N/A	N/A

Turtle Beach has higher revenue and earnings than Telkonet.

Volatility and Risk

Turtle Beach has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Telkonet has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Summary

Turtle Beach beats Telkonet on 11 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 Telkonet

Telkonet, Inc. provides EcoSmart and Rhapsody platforms of intelligent automation solutions for the Internet of Things in the United States. Its platforms provide savings, management reporting, analytics, and virtual engineering of a customer's portfolio and/or property's room-by-room energy consumption. The company offers EcoSmart product suite, including EcoInput, a lighting controller installed directly in line with existing light switches; EcoTouch Thermostat, a touch capacitive thermostat interface; EcoInsight Thermostat, a programmable and controllable wired thermostat; EcoAir Thermostat, a wireless thermostat; EcoSource Controller, a remote HVAC control device; EcoSmart VRF controllers; EcoConnect Bridge, an Ethernet to Zigbee bridge; EcoCommander Gateway, a network-edge gateway server; EcoSense Occupancy Sensor, a remote occupancy sensor; EcoSwitch Light Switch, an energy management product; EcoGuard Outlet, an EcoSmart control; and EcoContact Door & Window Sensor, a remote wireless door/window contact solution. It also provides EcoCentral, a solution for intelligent automation and energy management; EcoCare professional support services; and Rhapsody Platform focuses on utilizing WIFI and Bluetooth Low Energy for mobile app-based setup and configuration. The company serves the hospitality, educational, governmental, healthcare, multiple dwelling units, and other commercial markets. Telkonet, Inc. was founded in 1977 and is headquartered in Waukesha, Wisconsin.