Avid Technology (OTCMKTS: AVID) and Immersion Corporation (NASDAQ:IMMR) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional & Insider Ownership

75.3% of Immersion Corporation shares are owned by institutional investors. 7.2% of Immersion Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Avid Technology and Immersion Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Technology 0 1 0 0 2.00
Immersion Corporation 0 1 4 0 2.80

Avid Technology presently has a consensus target price of $5.00, suggesting a potential upside of 11.11%. Immersion Corporation has a consensus target price of $10.75, suggesting a potential upside of 40.71%. Given Immersion Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Immersion Corporation is more favorable than Avid Technology.

Profitability

This table compares Avid Technology and Immersion Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Technology -10.58% N/A -18.29%
Immersion Corporation -113.47% -43.56% -22.98%

Earnings and Valuation

This table compares Avid Technology and Immersion Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avid Technology $440.79 million 0.42 $46.85 million N/A N/A
Immersion Corporation $51.85 million 4.31 -$17.43 million ($2.03) -3.76

Avid Technology has higher revenue and earnings than Immersion Corporation.

Summary

Immersion Corporation beats Avid Technology on 6 of the 11 factors compared between the two stocks.

About Avid Technology

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

About Immersion Corporation

Immersion Corporation is a licensing company focused on the creation, design, development and licensing of haptic technologies that allow people to use their sense of touch when operating digital devices. The Company develops, licenses and supports a range of software and intellectual property (IP). It is focused on the markets, including mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical, and commercial. It provides advanced tactile software, related tools and technical assistance to certain customers, and offers licenses to its patented IP to other customers. Its licenses enable customers to deploy haptically-enabled devices, content and other offerings, which they sell under own brand names. It holds patents, covering digital technologies and including ways in which touch-related technology can be incorporated into and between hardware products and components, systems software, application software, and digital content.

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