Does Corsair Gaming Deserve to Trade at a Lower Valuation Than Logitech?
The pandemic sent sales for computer and gaming peripherals soaring, and two stocks that greatly benefited were Corsair Gaming (NASDAQ: CRSR) and Logitech International (NASDAQ: LOGI). These companies are leaders in this burgeoning market, and both offer investors similar growth profiles.
Over the last five years, Logitech's revenue has increased 156%. Corsair Gaming just had its initial public offering in 2020, but it posted a revenue increase of 55% last year -- slower than Logitech's 76%, but still stellar, especially compared to its relatively low valuation.
While near-term growth is expected to slow compared to the pandemic-driven momentum in 2020, Corsair Gaming and Logitech have bright futures in the estimated $36 billion market for computer gear. But Corsair offers much better value at a forward price-to-earnings (P/E) ratio of just 17.6, which is significantly cheaper than Logitech's 28.9 multiple.
Source Fool.com
