Immersion (NASDAQ:IMMR – Get Free Report) and America’s Car-Mart (NASDAQ:CRMT – 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 earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Institutional & Insider Ownership
60.6% of Immersion shares are held by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are held by institutional investors. 10.6% of Immersion shares are held by company insiders. Comparatively, 18.4% of America’s Car-Mart shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Immersion and America’s Car-Mart’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% |
| America’s Car-Mart | -18.21% | -15.19% | -4.73% |
Volatility and Risk
Analyst Ratings
This is a breakdown of current recommendations for Immersion and America’s Car-Mart, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Immersion | 0 | 2 | 1 | 0 | 2.33 |
| America’s Car-Mart | 1 | 2 | 0 | 0 | 1.67 |
Immersion presently has a consensus target price of $13.50, suggesting a potential upside of 89.61%. America’s Car-Mart has a consensus target price of $14.00, suggesting a potential upside of 673.48%. Given America’s Car-Mart’s higher probable upside, analysts clearly believe America’s Car-Mart is more favorable than Immersion.
Earnings & Valuation
This table compares Immersion and America’s Car-Mart”s 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 | 50.86 |
| America’s Car-Mart | $1.28 billion | 0.01 | -$139.11 million | ($23.80) | -0.08 |
Immersion has higher revenue and earnings than America’s Car-Mart. America’s Car-Mart is trading at a lower price-to-earnings ratio than Immersion, indicating that it is currently the more affordable of the two stocks.
Summary
Immersion beats America’s Car-Mart on 10 of the 14 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 America’s Car-Mart
America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.
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