Head-To-Head Comparison: Turtle Beach (NASDAQ:TBCH) and Ability (OTCMKTS:ABILF)

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

Earnings and Valuation

This table compares Ability 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
Ability	N/A	N/A	N/A	N/A	N/A
Turtle Beach	$372.77 million	0.62	-$17.68 million	$0.77	15.00

Ability has higher earnings, but lower revenue than Turtle Beach.

Volatility & Risk

Ability has a beta of -422.95, indicating that its stock price is 42,395% less volatile than the S&P 500. Comparatively, Turtle Beach has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Ability and Turtle Beach, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ability	0	0	0	0	0.00
Turtle Beach	0	0	2	0	3.00

Turtle Beach has a consensus target price of $22.00, suggesting a potential upside of 90.48%. Given Turtle Beach’s stronger consensus rating and higher probable upside, analysts plainly believe Turtle Beach is more favorable than Ability.

Insider & Institutional Ownership

67.0% of Turtle Beach shares are owned by institutional investors. 40.0% of Ability shares are owned by company insiders. Comparatively, 5.1% of Turtle Beach shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Summary

Turtle Beach beats Ability on 9 of the 10 factors compared between the two stocks.

About Ability

Ability Inc. provides systems for off-air cellular and satellite interception, and geolocation worldwide. The company engages in the interception of cellular and satellite communication networks for surveillance, border security, anti-terror, anti-crime, intelligence gathering, reconnaissance, target tracking, airport security, and tracking suspicious people for use by the ministries of defense, national agencies, secret services and security officers, federal police forces and presidential police, homeland security organizations, border control forces, integrators, anti-drug organizations and law enforcement units, and ministries of interior and justice, as well as armies, navies, and air forces. It also provides tactical and strategic interception systems for Thuraya, Iridium, and IsatPhone Pro that intercepts voice calls, SMS, data traffic, call related information, and detecting location of satellite phones; and systems to intercept VSAT, DCME, and other satellite links. In addition, the company offers cellular interception systems, which include Unlimited Interceptor, a geolocation system that detects the location of phones participating in intercepted conversations; GoDown, a system in cellular phones to change operational mode and operates as a selective jammer for prison-related projects; and In-Between Interception System that supports GSM, UMTS, and LTE networks. Further, it provides various IMSI catcher configurations and CDMA interception systems. The company was founded in 1994 and is based in Tel Aviv-Yafo, Israel.

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.