Duluth (NASDAQ:DLTH) and Immersion (NASDAQ:IMMR) Critical Analysis

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

Institutional & Insider Ownership

60.6% of Immersion shares are held by institutional investors. Comparatively, 24.4% of Duluth shares are held by institutional investors. 10.6% of Immersion shares are held by company insiders. Comparatively, 40.4% of Duluth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Immersion and Duluth’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%
Duluth	1.07%	-3.03%	-1.21%

Volatility & Risk

Immersion has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Duluth has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Immersion and Duluth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immersion	0	2	1	0	2.33
Duluth	0	3	0	0	2.00

Immersion presently has a consensus price target of $13.50, suggesting a potential upside of 90.41%. Duluth has a consensus price target of $5.00, suggesting a potential upside of 14.16%. Given Immersion’s stronger consensus rating and higher probable upside, equities analysts plainly believe Immersion is more favorable than Duluth.

Valuation and Earnings

This table compares Immersion and Duluth”s gross 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	$0.34	20.85
Duluth	$565.18 million	0.29	-$16.39 million	$0.14	31.29

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

Summary

Immersion beats Duluth on 9 of the 13 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 Duluth

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, tanks, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Bucket Master, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No-Yank, No Polo Shirt, Wild Boar Mocs, and Buck Naked. Duluth Holdings Inc. markets its products through its Website, catalogs, and retail stores. As of May 17, 2018, it operated 36 retail stores. The company was formerly known as GEMPLER'S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Belleville, Wisconsin.