Investors interested in stocks from the Computer - Peripheral Equipment sector have probably already heard of Turtle Beach (HEAR) and Logitech (LOGI). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both Turtle Beach and Logitech are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

HEAR currently has a forward P/E ratio of 13.69, while LOGI has a forward P/E of 21.55. We also note that HEAR has a PEG ratio of 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LOGI currently has a PEG ratio of 2.56.

Another notable valuation metric for HEAR is its P/B ratio of 2.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LOGI has a P/B of 6.54.

These metrics, and several others, help HEAR earn a Value grade of A, while LOGI has been given a Value grade of C.

Both HEAR and LOGI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HEAR is the superior value option right now.

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Turtle Beach Corporation (HEAR) : Free Stock Analysis Report

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