The growing number of gaming enthusiasts drives the global gaming peripherals market in conjunction with the rising popularity of e-sports tournaments. The industry is further aided by the popularity of e-sports and other games, which have led to the launch of specialized gaming keyboards and gamepads.
The global gaming peripheral market is predicted to grow at a CAGR of roughly 9.5% between 2024 and 2032.
Moreover, e-sports has emerged as a global phenomenon, attracting millions of viewers and generating substantial revenue. This has led to an increasing demand for gaming hardware capable of supporting competitive play, such as high-performance gaming PCs, mice, and keyboards.
Against this backdrop, let’s compare two Technology - Hardware stocks, Corsair Gaming, Inc. (CRSR) and Logitech International S.A. (LOGI), to analyze which gaming peripheral stock could be a better investment.
The Case for Corsair Gaming, Inc. stock
Valued at $710.28 million by market cap, Corsair Gaming, Inc. (CRSR) designs, develops, markets, and sells gaming and streaming peripherals, components, and systems in the Americas, Europe, the Middle East, and the Asia Pacific.
CRSR’s stock has declined 39.7% over the past three months to close the last trading session at $6.82.
In terms of the trailing-12-month net income margin, CRSR’s 24.78% is 50.1% lower than the 49.62% industry average. Likewise, its 1.95% trailing-12-month EBITDA margin is 80.9% lower than the industry average of 10.21%.
CRSR’s net revenue for the second quarter that ended June 30, 2024, declined 80.3% year-over-year to $261.30 million. The company’s net loss and net loss per share attributable to common stockholders of CRSR came in at $23.51 million and $0.28, up significantly from the prior year’s quarter, respectively.
Street expects CRSR’s revenue for the quarter ending September 2024 to decline 16.7% year-over-year to $302.44 million. The company’s EPS for the same quarter is expected to decline 53% year-over-year to $0.06. Moreover, the company failed to surpass consensus EPS estimates in each of the trailing four quarters.
CRSR’s bleak fundamentals are reflected in its POWR Ratings. The stock has an overall D rating, equating to Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has a D grade for Momentum, Sentiment, and Quality. Within the B-rated Technology - Hardware industry, CRSR is ranked #30 out of 39 stocks.
In addition to the POWR Ratings I’ve just highlighted, you can see CRSR’s ratings for Growth and Stability here.
The Case for Logitech International S.A. stock
Valued at $13.95 billion by market cap, Logitech International S.A. (LOGI) designs, manufactures, and markets software-enabled hardware solutions that connect people to working, creating, gaming, and streaming worldwide. The company is based in Lausanne, Switzerland.
On August 19, 2024, LOGI announced that it partnered with Aimlabs, a platform developed by State Space Labs, Inc., to introduce The Gauntlet. This exciting new competition was part of the Global Logitech G PLAYDAYS initiative and featured over $100,000 in cash and prizes for participants.
LOGI’s stock has gained 2.2% over the past month to close the last trading session at $90.86.
In terms of the trailing-12-month asset turnover ratio, LOGI’s 1.24x is 100.2% higher than the 0.62x industry average. Likewise, its 15.18% trailing-12-month EBIT margin is 202.9% higher than the 5.01% industry average.
LOGI’s net sales for the first quarter that ended June 30, 2024, came in at $1.09 billion, up 77.4% year-over-year. Its non-GAAP operating income rose 67% year-over-year to $182.44 million. Its non-GAAP net income increased 68.9% year-over-year to $174.63 million, and its non-GAAP net income per share grew 73.8% over the previous year’s quarter to $1.13.
Street expects LOGI’s revenue for the second quarter ending September 2024 to increase 5% year-over-year to $1.11 billion. Its EPS is expected to be $1.07 for the same quarter. Moreover, the company surpassed consensus revenue and EPS estimates in each of the trailing four quarters.
LOGI’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, translating to a Buy in our proprietary rating system.
LOGI has an A grade for Quality. It is ranked #15 out of 39 stocks in the same industry.
Click here for the additional POWR Ratings for LOGI (Value, Growth, Sentiment, Stability, and Momentum).
Corsair vs. Logitech: Which Gaming Peripheral Stock is a Better Investment?
Customers worldwide are increasingly looking for high-performance gaming hardware that can handle the demands of modern gaming. They seek devices with powerful processors, high-resolution displays, and fast refresh rates to enhance their gaming experience, thereby driving growth in the gaming peripheral industry.
Both CRSR and LOGI stand to capitalize on these burgeoning industry trends. However, LOGI’s higher profitability and strong analysts' sentiments favor it as the better gaming peripheral stock pick.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Technology - Hardware industry here.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
LOGI shares were trading at $91.10 per share on Tuesday afternoon, up $0.24 (+0.26%). Year-to-date, LOGI has declined -4.17%, versus a 18.97% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi Agarwal
Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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