Immersion (NASDAQ:IMMR) versus Petco Health and Wellness (NASDAQ:WOOF) Financial Contrast

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

Institutional & Insider Ownership

60.6% of Immersion shares are owned by institutional investors. 6.5% of Petco Health and Wellness shares are owned by insiders. Comparatively, 10.6% of Immersion shares are owned 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.

Volatility & Risk

Petco Health and Wellness has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Immersion has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Petco Health and Wellness and Immersion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petco Health and Wellness	0.51%	3.44%	0.78%
Immersion	0.60%	1.83%	0.82%

Valuation & Earnings

This table compares Petco Health and Wellness and Immersion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petco Health and Wellness	$5.97 billion	0.12	$9.07 million	$0.10	22.30
Immersion	$1.73 billion	0.14	$4.52 million	$0.34	21.85

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Petco Health and Wellness and Immersion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petco Health and Wellness	2	5	1	1	2.11
Immersion	0	2	1	0	2.33

Petco Health and Wellness currently has a consensus price target of $3.42, indicating a potential upside of 53.36%. Immersion has a consensus price target of $13.50, indicating a potential upside of 81.70%. Given Immersion’s stronger consensus rating and higher probable upside, analysts plainly believe Immersion is more favorable than Petco Health and Wellness.

Summary

Immersion beats Petco Health and Wellness on 8 of the 14 factors compared between the two stocks.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, 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.