Genesco (NYSE:GCO) versus Immersion (NASDAQ:IMMR) Critical Survey

Immersion (NASDAQ:IMMR) and Genesco (NYSE:GCO) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Immersion and Genesco”s top-line revenue, earnings per share 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	51.50
Genesco	$2.44 billion	0.16	$13.27 million	$3.84	9.13

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

Volatility and Risk

Immersion has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Genesco has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Immersion	0.26%	0.80%	0.35%
Genesco	1.71%	3.14%	1.19%

Institutional and Insider Ownership

60.6% of Immersion shares are owned by institutional investors. Comparatively, 94.5% of Genesco shares are owned by institutional investors. 10.6% of Immersion shares are owned by insiders. Comparatively, 23.1% of Genesco shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immersion	0	2	1	0	2.33
Genesco	1	2	0	2	2.60

Immersion presently has a consensus target price of $13.50, indicating a potential upside of 87.24%. Genesco has a consensus target price of $36.00, indicating a potential upside of 2.66%. Given Immersion’s higher probable upside, research analysts plainly believe Immersion is more favorable than Genesco.

Summary

Genesco beats Immersion on 12 of the 15 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 Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.