Analyzing Turtle Beach (NASDAQ:TBCH) and Identiv (NASDAQ:INVE)

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

Profitability

This table compares Turtle Beach and Identiv’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%
Identiv	308.59%	-13.75%	-12.80%

Volatility and Risk

Turtle Beach has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, Identiv has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Valuation & Earnings

This table compares Turtle Beach and Identiv”s top-line 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	0.84	$16.18 million	$0.94	16.83
Identiv	$26.63 million	3.30	$74.82 million	$3.04	1.22

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	0	1	2	0	2.67
Identiv	0	0	3	0	3.00

Turtle Beach presently has a consensus price target of $16.17, indicating a potential upside of 2.19%. Identiv has a consensus price target of $5.33, indicating a potential upside of 44.14%. Given Identiv’s stronger consensus rating and higher probable upside, analysts clearly believe Identiv is more favorable than Turtle Beach.

Institutional & Insider Ownership

67.0% of Turtle Beach shares are owned by institutional investors. Comparatively, 65.2% of Identiv shares are owned by institutional investors. 3.3% of Turtle Beach shares are owned by company insiders. Comparatively, 3.6% of Identiv shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Identiv beats Turtle Beach on 8 of the 14 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 Identiv

Identiv, Inc., a security technology company, that provides secure identification and physical security solutions that secure things, data, and physical places worldwide. It operates in two segments, Identity and Premises. The Identity segment offers products and solutions that enables secure access to information serving the logical access and cyber security markets, as well as protecting connected objects and information using radio-frequency identification embedded security. The Premises segment provides solutions for premises security market, such as access control, video surveillance, analytics, audio, access readers, and identities to government facilities, schools, utilities, hospitals, stores, and apartment buildings. The company sells its products through dealers, systems integrators, value added resellers, and resellers. The company was formerly known as Identive Group, Inc. and changed its name to Identiv, Inc. in May 2014. Identiv, Inc. was founded in 1990 and is headquartered in Fremont, California.