Head-To-Head Analysis: Immersion (NASDAQ:IMMR) vs. Citi Trends (NASDAQ:CTRN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Citi Trends	0.84%	8.11%	2.00%
Immersion	0.60%	1.83%	0.82%

Valuation & Earnings

This table compares Citi Trends and Immersion”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citi Trends	$819.96 million	0.50	$5.21 million	$0.82	59.99
Immersion	$1.73 billion	0.14	$4.52 million	$0.34	21.10

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

Risk & Volatility

Citi Trends has a beta of 1.81, meaning that its stock price is 81% 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.

Analyst Recommendations

This is a summary of current recommendations for Citi Trends and Immersion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citi Trends	1	0	2	0	2.33
Immersion	0	2	1	0	2.33

Citi Trends presently has a consensus price target of $81.00, indicating a potential upside of 64.67%. Immersion has a consensus price target of $13.50, indicating a potential upside of 88.18%. Given Immersion’s higher possible upside, analysts clearly believe Immersion is more favorable than Citi Trends.

Insider & Institutional Ownership

60.6% of Immersion shares are held by institutional investors. 9.6% of Citi Trends shares are held by insiders. Comparatively, 10.6% of Immersion shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Citi Trends beats Immersion on 9 of the 13 factors compared between the two stocks.

About Citi Trends

Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.

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.