Turtle Beach (NASDAQ:TBCH – Get Free Report) and Quantum (NASDAQ:QMCO – Get Free Report) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Profitability
This table compares Turtle Beach and Quantum’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% |
| Quantum | -80.76% | N/A | -7.28% |
Valuation & Earnings
This table compares Turtle Beach and Quantum”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Turtle Beach | $319.91 million | 0.71 | $15.73 million | ($0.21) | -60.29 |
| Quantum | $279.58 million | 3.14 | -$101.05 million | ($13.24) | -1.68 |
Turtle Beach has higher revenue and earnings than Quantum. Turtle Beach is trading at a lower price-to-earnings ratio than Quantum, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
67.0% of Turtle Beach shares are held by institutional investors. Comparatively, 63.7% of Quantum shares are held by institutional investors. 3.4% of Turtle Beach shares are held by company insiders. Comparatively, 41.0% of Quantum shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Turtle Beach has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500. Comparatively, Quantum has a beta of 2.97, meaning that its share price is 197% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Turtle Beach and Quantum, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Turtle Beach | 2 | 1 | 4 | 0 | 2.29 |
| Quantum | 1 | 0 | 4 | 0 | 2.60 |
Turtle Beach currently has a consensus price target of $16.80, suggesting a potential upside of 32.70%. Quantum has a consensus price target of $24.00, suggesting a potential upside of 7.87%. Given Turtle Beach’s higher probable upside, equities analysts clearly believe Turtle Beach is more favorable than Quantum.
Summary
Turtle Beach beats Quantum on 7 of the 13 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 Quantum
Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching video, audio, and image files, and workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage for long term data preservation and protection; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, managed services, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. It has a partnership with Tiger Surveillance to deliver end-to-end solutions for long-term retention and archiving of video surveillance data. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.
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