Immersion (NASDAQ:IMMR) and Lulu’s Fashion Lounge (NASDAQ:LVLU) Head-To-Head Comparison

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

Analyst Ratings

This is a summary of current ratings and target prices for Lulu’s Fashion Lounge and Immersion, as provided 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 84.93%. Given Immersion’s stronger consensus rating and higher possible upside, analysts plainly believe Immersion is more favorable than Lulu’s Fashion Lounge.

Insider and Institutional Ownership

73.8% of Lulu’s Fashion Lounge shares are owned by institutional investors. Comparatively, 60.6% of Immersion shares are owned by institutional investors. 7.8% of Lulu’s Fashion Lounge shares are owned by company insiders. Comparatively, 10.6% of Immersion shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lulu’s Fashion Lounge and Immersion”s top-line 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	0.11	-$13.71 million	($2.94)	-3.51
Immersion	$1.73 billion	0.14	$4.52 million	$0.14	52.14

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.

Volatility and Risk

Lulu’s Fashion Lounge has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Immersion has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

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%

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.