Analyzing Immersion (NASDAQ:IMMR) and Lulu’s Fashion Lounge (NASDAQ:LVLU)

Lulu’s Fashion Lounge (NASDAQ:LVLU) and Immersion (NASDAQ:IMMR) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Volatility and Risk

Lulu’s Fashion Lounge has a beta of 0.27, suggesting that its share price is 73% less 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.

Valuation & Earnings

This table compares Lulu’s Fashion Lounge and Immersion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lulu’s Fashion Lounge	$282.28 million	0.14	-$13.71 million	($2.94)	-4.57
Immersion	$1.73 billion	0.14	$4.52 million	$0.34	21.71

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

Insider & Institutional Ownership

73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. Comparatively, 60.6% of Immersion shares are held by institutional investors. 7.8% of Lulu’s Fashion Lounge shares are held by company insiders. Comparatively, 10.6% of Immersion shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lulu’s Fashion Lounge and Immersion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lulu’s Fashion Lounge	-3.17%	-946.15%	-8.73%
Immersion	0.60%	1.83%	0.82%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Lulu’s Fashion Lounge and Immersion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lulu’s Fashion Lounge	1	0	0	0	1.00
Immersion	0	2	1	0	2.33

Immersion has a consensus price target of $13.50, indicating a potential upside of 82.93%. Given Immersion’s stronger consensus rating and higher possible upside, analysts clearly believe Immersion is more favorable than Lulu’s Fashion Lounge.

Summary

Immersion beats Lulu’s Fashion Lounge on 13 of the 14 factors compared between the two stocks.

About Lulu’s Fashion Lounge

Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.

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.