Immersion (IMMR) and RadiSys (RSYS) Head to Head Analysis

RadiSys (NASDAQ: RSYS) and Immersion (NASDAQ:IMMR) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for RadiSys and Immersion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RadiSys 0 0 5 0 3.00
Immersion 0 0 4 0 3.00

RadiSys currently has a consensus price target of $3.60, suggesting a potential upside of 373.68%. Immersion has a consensus price target of $13.56, suggesting a potential upside of 0.09%. Given RadiSys’ higher possible upside, equities research analysts plainly believe RadiSys is more favorable than Immersion.

Volatility & Risk

RadiSys has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Immersion has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

32.4% of RadiSys shares are owned by institutional investors. Comparatively, 78.9% of Immersion shares are owned by institutional investors. 6.1% of RadiSys shares are owned by insiders. Comparatively, 7.2% of Immersion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares RadiSys and Immersion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RadiSys -40.08% -100.29% -21.11%
Immersion 33.68% 118.96% 55.89%

Earnings & Valuation

This table compares RadiSys and Immersion’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RadiSys $133.77 million 0.22 -$52.60 million ($0.55) -1.38
Immersion $35.01 million 11.75 -$45.29 million ($1.19) -11.39

Immersion has lower revenue, but higher earnings than RadiSys. Immersion is trading at a lower price-to-earnings ratio than RadiSys, indicating that it is currently the more affordable of the two stocks.

Summary

Immersion beats RadiSys on 8 of the 13 factors compared between the two stocks.

About RadiSys

Radisys Corporation provides telecom solutions worldwide. It operates in two segments, Software-Systems and Hardware Solutions. The company's products include MediaEngine products that provide media processing capabilities required for applications, such as voice over long-term evolution (VoLTE), voice over Wi-Fi, Web real-time communication, and multimedia conferencing, as well as media interworking; and MobilityEngine, Its MobilityEngine products portfolio provide solutions for 4G, LTE-Advance and emerging 5G standards for RAN use cases, including Centralized, Virtualized and multi access edge compute (MEC). It also offers FlowEngine, which comprises data plane traffic distribution products that classify and distribute session data flows to network processing resources. In addition, the company develops telecommunications products and applications; and DCEngine products include open-based rack-scale systems that provide transformation to cloud based compute, storage, networking fabrics, and open source hardware and software. Further, it offers legacy embedded products, including ATCA, computer-on-module express, and rack mount servers that enable the control and movement of data in 3G and LTE telecom networks and provide the hardware enablement for network elements applications; enable image processing capabilities for healthcare markets; and enable energy-efficient computing capabilities for industrial deployments. The company sells its products through direct sales, distributors, sales representatives, and system integrators in North America, Europe, the Middle East, Africa, and the Asia Pacific. Radisys Corporation was founded in 1987 and is headquartered in Hillsboro, Oregon.

About Immersion

Immersion Corporation creates, designs, develops, and licenses haptic technologies in North America, Europe, and Asia. Its technologies allow people to use their sense of touch when they engage with various digital products. The company offers TouchSense Lite and TouchSense Premium toolkits that enable original equipment manufacturers and their suppliers to add customized haptic technologies to their own branded devices and other products. It also provides TouchSense Software Development Kits, which consist of design tools, integration software, and effect libraries that allow for the design, encoding, and playback of tactile effects in mobile content, including games, ads, and video. In addition, the company offers TouchSense Force, which comprises design tools, APIs, reference designs, and firmware for the PC/Console gaming/virtual reality markets. Further, the company licenses its patents to implement the licensed software to customers. Additionally, it provides engineering and integration services, design kits for prototyping, authoring tools, application programming interfaces, and platform independent solutions. The company offers its products to mobile communications, wearables, and consumer electronics; console and PC gaming; automotive; and medical markets. Immersion Corporation was founded in 1993 and is headquartered in San Jose, California.

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