Immersion (NASDAQ:IMMR) & Sportsman’s Warehouse (NASDAQ:SPWH) Critical Review
by Jessica Moore · The Cerbat GemImmersion (NASDAQ:IMMR – Get Free Report) and Sportsman’s Warehouse (NASDAQ:SPWH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Valuation and Earnings
This table compares Immersion and Sportsman’s Warehouse”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Immersion | $1.73 billion | 0.14 | $4.52 million | $0.14 | 53.71 |
| Sportsman’s Warehouse | $1.21 billion | 0.04 | -$50.06 million | ($1.23) | -0.97 |
Immersion has higher revenue and earnings than Sportsman’s Warehouse. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than Immersion, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Immersion has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
Profitability
This table compares Immersion and Sportsman’s Warehouse’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Immersion | 0.60% | 1.83% | 0.82% |
| Sportsman’s Warehouse | -3.94% | -10.50% | -2.29% |
Institutional & Insider Ownership
60.6% of Immersion shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 10.6% of Immersion shares are owned by insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Immersion and Sportsman’s Warehouse, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Immersion | 0 | 2 | 1 | 0 | 2.33 |
| Sportsman’s Warehouse | 1 | 2 | 1 | 0 | 2.00 |
Immersion currently has a consensus price target of $13.50, indicating a potential upside of 79.52%. Sportsman’s Warehouse has a consensus price target of $2.12, indicating a potential upside of 78.57%. Given Immersion’s stronger consensus rating and higher probable upside, research analysts clearly believe Immersion is more favorable than Sportsman’s Warehouse.
Summary
Immersion beats Sportsman’s Warehouse on 12 of the 13 factors compared between the two stocks.
About Immersion
Immersion Corporation, together with its subsidiaries, engages in the creation, design, development, and licensing of haptic technologies that allow people to use their sense of touch to engage with and experience various digital products in North America, Europe, and Asia. The company provides technology, patent, and combined licenses. It serves markets, including mobility, gaming, automotive, virtual and augmented reality, and wearables, as well as residential, commercial, and industrial Internet of Things. The company was incorporated in 1993 and is headquartered in Aventura, Florida.
About Sportsman’s Warehouse
Sportsman’s Warehouse Holdings, Inc. engages in the retail of sporting and athletic goods. Its products include hunting and shooting, archery, fishing, camping, boating accessories, optics and electronics, knives and tools, and footwear. The company was founded in 1986 and is headquartered in West Jordan, UT.