Immersion (NASDAQ: IMMR) and Avid Technology (NASDAQ:AVID) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Insider & Institutional Ownership
78.4% of Immersion shares are held by institutional investors. Comparatively, 70.4% of Avid Technology shares are held by institutional investors. 7.2% of Immersion shares are held by company insiders. Comparatively, 7.5% of Avid Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Immersion has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Avid Technology has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.
This table compares Immersion and Avid Technology’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Valuation & Earnings
This table compares Immersion and Avid Technology’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Avid Technology has higher revenue and earnings than Immersion. Avid Technology is trading at a lower price-to-earnings ratio than Immersion, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Immersion and Avid Technology, as provided by MarketBeat.
||Strong Buy Ratings
Immersion currently has a consensus target price of $13.25, indicating a potential upside of 16.74%. Avid Technology has a consensus target price of $4.50, indicating a potential downside of 6.83%. Given Immersion’s stronger consensus rating and higher probable upside, analysts clearly believe Immersion is more favorable than Avid Technology.
Avid Technology beats Immersion on 7 of the 13 factors compared between the two stocks.
Immersion 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.
Avid Technology Company Profile
Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.
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