Critical Contrast: Immersion Corporation (IMMR) and Its Peers

Immersion Corporation (NASDAQ: IMMR) is one of 22 publicly-traded companies in the “Computer Peripherals” industry, but how does it contrast to its peers? We will compare Immersion Corporation to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.

Profitability

This table compares Immersion Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Immersion Corporation -113.47% -43.56% -22.98%
Immersion Corporation Competitors -46.45% -19.80% -8.97%

Insider & Institutional Ownership

75.3% of Immersion Corporation shares are held by institutional investors. Comparatively, 35.6% of shares of all “Computer Peripherals” companies are held by institutional investors. 7.2% of Immersion Corporation shares are held by company insiders. Comparatively, 18.1% of shares of all “Computer Peripherals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Immersion Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Immersion Corporation 0 1 4 0 2.80
Immersion Corporation Competitors 107 332 453 21 2.42

Immersion Corporation presently has a consensus price target of $10.75, indicating a potential upside of 40.71%. As a group, “Computer Peripherals” companies have a potential upside of 24.98%. Given Immersion Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Immersion Corporation is more favorable than its peers.

Earnings & Valuation

This table compares Immersion Corporation and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Immersion Corporation $51.85 million -$17.43 million -3.76
Immersion Corporation Competitors $1.18 billion $50.73 million -40.30

Immersion Corporation’s peers have higher revenue and earnings than Immersion Corporation. Immersion Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Immersion Corporation has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Immersion Corporation’s peers have a beta of 0.91, meaning that their average stock price is 9% less volatile than the S&P 500.

Summary

Immersion Corporation peers beat Immersion Corporation on 7 of the 12 factors compared.

Immersion Corporation Company Profile

Immersion Corporation is a licensing company focused on the creation, design, development and licensing of haptic technologies that allow people to use their sense of touch when operating digital devices. The Company develops, licenses and supports a range of software and intellectual property (IP). It is focused on the markets, including mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical, and commercial. It provides advanced tactile software, related tools and technical assistance to certain customers, and offers licenses to its patented IP to other customers. Its licenses enable customers to deploy haptically-enabled devices, content and other offerings, which they sell under own brand names. It holds patents, covering digital technologies and including ways in which touch-related technology can be incorporated into and between hardware products and components, systems software, application software, and digital content.

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