Boot Barn (NYSE:BOOT) vs. Immersion (NASDAQ:IMMR) Financial Review

Boot Barn (NYSE:BOOT) and Immersion (NASDAQ:IMMR) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Valuation and Earnings

This table compares Boot Barn and Immersion”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boot Barn	$2.25 billion	1.75	$225.88 million	$8.26	15.95
Immersion	$1.73 billion	0.14	$4.52 million	$0.34	21.18

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

Institutional and Insider Ownership

60.6% of Immersion shares are held by institutional investors. 0.7% of Boot Barn shares are held by insiders. Comparatively, 10.6% of Immersion shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boot Barn	10.45%	18.82%	9.98%
Immersion	0.60%	1.83%	0.82%

Analyst Recommendations

This is a summary of recent recommendations for Boot Barn and Immersion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boot Barn	0	2	13	0	2.87
Immersion	0	2	1	0	2.33

Boot Barn presently has a consensus price target of $191.46, indicating a potential upside of 45.30%. Immersion has a consensus price target of $13.50, indicating a potential upside of 87.50%. Given Immersion’s higher probable upside, analysts plainly believe Immersion is more favorable than Boot Barn.

Volatility & Risk

Boot Barn has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Immersion has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Summary

Boot Barn beats Immersion on 10 of the 14 factors compared between the two stocks.

About Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.

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.