Financial Comparison: Immersion Corporation (NASDAQ:IMMR) vs. Radcom (RDCM)

Immersion Corporation (NASDAQ: IMMR) and Radcom (NASDAQ:RDCM) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitabiliy, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Immersion Corporation -94.05% -25.30% -15.95%
Radcom 2.18% 2.70% 1.94%

Insider & Institutional Ownership

75.9% of Immersion Corporation shares are owned by institutional investors. Comparatively, 16.6% of Radcom shares are owned by institutional investors. 7.2% of Immersion Corporation shares are owned by company insiders. Comparatively, 69.0% of Radcom shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Immersion Corporation has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Radcom has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Immersion Corporation and Radcom’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Immersion Corporation $52.69 million 4.90 -$22.59 million ($1.72) -5.15
Radcom $31.00 million 8.21 $351,500.00 $0.08 273.13

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

Analyst Ratings

This is a breakdown of recent ratings for Immersion Corporation and Radcom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Immersion Corporation 0 1 3 0 2.75
Radcom 0 0 2 0 3.00

Immersion Corporation currently has a consensus target price of $10.88, indicating a potential upside of 22.88%. Radcom has a consensus target price of $27.00, indicating a potential upside of 23.57%. Given Radcom’s stronger consensus rating and higher possible upside, analysts clearly believe Radcom is more favorable than Immersion Corporation.

Summary

Radcom beats Immersion Corporation on 9 of the 13 factors compared between the two stocks.

About Immersion Corporation

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.

About Radcom

RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.

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