The increasing popularity of immersive and realistic games drives the global gaming peripherals market. Due to the booming gaming industry, the market is further expanding due to the rising demand for gaming peripherals, including headsets, joysticks, mice, keyboards, and gamepads. The global gaming peripherals market is expected to grow at a CAGR of 7.3% by 2032.
Furthermore, technological innovations, including customizable RGB lighting, ergonomic designs, and sophisticated sensor technologies, have spurred advancements in the sector. The continuous evolution of gaming platforms-including PC, console, and mobile-provides a plethora of opportunities for peripheral manufacturers to address diverse user preferences.
Against this backdrop, let’s compare two established gaming stocks to analyze which gaming peripheral stock is a better play: Corsair Gaming, Inc. (CRSR) and Logitech International S.A. (LOGI).
The Case for Corsair Gaming, Inc. stock
Valued at $803.57 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 nine months but gained 31.7% over the past three months to close the last trading session at $7.68.
In terms of the trailing-12-month gross profit margin, CRSR’s 24.40% is 51.4% lower than the 50.24% industry average. Likewise, its 0.53% trailing-12-month EBITDA margin is 94.8% lower than the industry average of 10.24%.
CRSR’s net revenue for the third quarter that ended September 30, 2024, declined 16.2% year-over-year to $304.20 million. The company’s net loss and net loss per share attributable to common stockholders of CRSR came in at $58.40 million and $0.56, up significantly from the prior year’s quarter, respectively.
Street expects CRSR’s revenue for the quarter ending December 2024 to decline 6.7% year-over-year to $389.47 million. The company’s EPS for the same quarter is expected to decline 26.4% year-over-year to $0.16. Moreover, the company failed to surpass consensus EPS estimates in each of the trailing four quarters.
CRSR’s POWR Ratings reflect mixed prospects. It has an overall rating of C, which translates to a Neutral in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
CRSR is ranked #31 out of 40 stocks in the Technology - Hardware industry. It has a C grade for Growth, Momentum, Sentiment, Quality, and Stability. To see CRSR’s Value ratings, click here.
The Case for Logitech International S.A. Stock
Valued at $12.92 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.
LOGI’s stock has gained 9.5% over the past month to close the last trading session at $84.63.
In terms of the trailing-12-month EBIT margin, LOGI’s 15.12% is 179.3% higher than the 5.41% industry average. Likewise, its 16.87% trailing-12-month EBITDA margin is 64.7% higher than the industry average of 10.24%.
LOGI’s net sales for the second quarter that ended September 30, 2024, came in at $1.12 billion, up 10.9% year-over-year. Its non-GAAP operating income rose 5.2% year-over-year to $192.77 million. Its non-GAAP net income increased 6.2% year-over-year to $184.09 million, and its non-GAAP net income per share grew 10.1% over the previous year’s quarter to $1.20.
Analysts expect LOGI’s revenue for the year ending March 2025 to increase 3.9% year-over-year to $4.46 billion. Its EPS is expected to grow 6.9% year-over-year to $4.54 for the same quarter. Moreover, the company surpassed EPS estimates in each of the four trailing quarters.
LOGI’s robust 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 in Quality and a B for Momentum and Sentiment. It is ranked #18 in the same industry.
Click here for the additional POWR Ratings for LOGI (Growth, Stability, and Value).
Corsair Gaming (CRSR) vs. Logitech (LOGI): Which Gaming Peripheral Stock Is a Better Play?
The gaming peripheral industry is experiencing robust growth, fueled by increasing consumer interest in immersive gaming experiences, technological advancements, and the expanding global gaming community.
Leading gaming companies, such as CRSR and LOGI, stand to capitalize on the optimistic industry outlook. However, LOGI’s higher profitability and promising near-term outlook favor it as the better 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.
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LOGI shares were trading at $84.34 per share on Friday afternoon, down $0.29 (-0.34%). Year-to-date, LOGI has declined -11.28%, versus a 28.27% 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.
Corsair Gaming (CRSR) vs. Logitech (LOGI): Which Gaming Peripheral Stock Is a Better Play? StockNews.com
