Head to Head Analysis: Genesco (NYSE:GCO) versus Immersion (NASDAQ:IMMR)

Immersion (NASDAQ:IMMR) and Genesco (NYSE:GCO) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Immersion and Genesco”s revenue, earnings per share 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	51.50
Genesco	$2.44 billion	0.16	$13.27 million	$3.84	9.13

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

Insider and Institutional Ownership

60.6% of Immersion shares are held by institutional investors. Comparatively, 94.5% of Genesco shares are held by institutional investors. 10.6% of Immersion shares are held by company insiders. Comparatively, 23.1% of Genesco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Immersion and Genesco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immersion	0	2	1	0	2.33
Genesco	1	2	0	2	2.60

Immersion currently has a consensus target price of $13.50, indicating a potential upside of 87.24%. Genesco has a consensus target price of $36.00, indicating a potential upside of 2.66%. Given Immersion’s higher probable upside, equities analysts plainly believe Immersion is more favorable than Genesco.

Volatility & Risk

Immersion has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Genesco has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Immersion	0.26%	0.80%	0.35%
Genesco	1.71%	3.14%	1.19%

Summary

Genesco beats Immersion on 12 of the 15 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 Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.