Head to Head Analysis: Turtle Beach (NASDAQ:TBCH) versus Adtran Networks (OTCMKTS:ADVOF)

Turtle Beach (NASDAQ:TBCH) and Adtran Networks (OTCMKTS:ADVOF) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

67.0% of Turtle Beach shares are owned by institutional investors. 5.1% of Turtle Beach shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Turtle Beach and Adtran Networks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turtle Beach	0	0	1	0	3.00
Adtran Networks	0	0	0	0	0.00

Turtle Beach presently has a consensus price target of $21.00, suggesting a potential upside of 48.73%. Given Turtle Beach’s stronger consensus rating and higher probable upside, analysts plainly believe Turtle Beach is more favorable than Adtran Networks.

Valuation and Earnings

This table compares Turtle Beach and Adtran Networks”s 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	0.76	-$17.68 million	$0.77	18.34
Adtran Networks	$664.18 million	1.61	-$15.71 million	N/A	N/A

Adtran Networks has higher revenue and earnings than Turtle Beach.

Volatility & Risk

Turtle Beach has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, Adtran Networks has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Turtle Beach and Adtran Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Turtle Beach	1.41%	9.18%	3.88%
Adtran Networks	N/A	N/A	N/A

Summary

Turtle Beach beats Adtran Networks on 9 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 Adtran Networks

Adtran Networks SE engages in the development, manufacture, and sale optical and Ethernet-based networking solutions for telecommunications carriers and enterprises to deliver data, storage, voice, and video services worldwide. It offers open optical transport solutions, such as FSP 3000 open terminals, FSP 3000 open line systems, pluggables and subsystems, and optical access solutions; packet edge and aggregation products, including carrier Ethernet and programmable multilayer edge, metro aggregation, and edge computing products; disaggregated networking, such as packet optical terminals and ensemble activators. The company also provides network virtualization products comprising ensemble connectors, orchestrators, and harmony ecosystems, as well as operates ensemble virtualization director, a management platform for the creation and deployment of virtualized services; network infrastructure assurance products; timing and synchronization products; and automated network management products, such as ensemble optical, sync, fiber, and packet director, and ensemble controllers. In addition, it offers professional services to build, care, and enable the networks. Adtran Networks SE sells its products to telecommunications service providers, private companies, universities, and government agencies directly, as well as through a network of distribution partners. The company was formerly known as ADVA Optical Networking SE and changed its name to Adtran Networks SE in June 2023. The company was founded in 1994 and is headquartered in Munich, Germany. Adtran Networks SE operates as a subsidiary of ADTRAN Holdings, Inc.