HEAR vs. AIRG: Which Stock Is the Better Value Option?

Investors interested in stocks from the Communication - Components sector have probably already heard of Turtle Beach (HEAR) and Airgain (AIRG). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Turtle Beach and Airgain are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HEAR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

HEAR currently has a forward P/E ratio of 14.86, while AIRG has a forward P/E of 70.79. We also note that HEAR has a PEG ratio of 0.93. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AIRG currently has a PEG ratio of 2.02.

Another notable valuation metric for HEAR is its P/B ratio of 1.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AIRG has a P/B of 1.81.

These are just a few of the metrics contributing to HEAR's Value grade of B and AIRG's Value grade of D.

HEAR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HEAR is likely the superior value option right now.

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Turtle Beach Corporation (HEAR) : Free Stock Analysis Report
 
Airgain, Inc. (AIRG) : Free Stock Analysis Report
 
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