Reviewing Top Image Systems (TISA) and Immersion (IMMR)

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

Valuation & Earnings

This table compares Top Image Systems and Immersion’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Top Image Systems $29.67 million 0.63 -$6.58 million ($0.37) -2.76
Immersion $35.01 million 10.05 -$45.29 million ($1.19) -9.61

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

Profitability

This table compares Top Image Systems and Immersion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Top Image Systems -22.20% -40.66% -19.24%
Immersion 40.38% 86.57% 49.01%

Institutional & Insider Ownership

3.8% of Top Image Systems shares are owned by institutional investors. Comparatively, 75.9% of Immersion shares are owned by institutional investors. 18.6% of Immersion shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Top Image Systems has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Immersion has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Top Image Systems and Immersion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Top Image Systems 0 0 1 0 3.00
Immersion 0 2 1 0 2.33

Top Image Systems presently has a consensus price target of $3.00, indicating a potential upside of 194.12%. Immersion has a consensus price target of $13.42, indicating a potential upside of 17.38%. Given Top Image Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Top Image Systems is more favorable than Immersion.

Summary

Immersion beats Top Image Systems on 7 of the 13 factors compared between the two stocks.

Top Image Systems Company Profile

Top Image Systems Ltd. develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees worldwide. Its solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. The company's products integrate information regardless of the source and format of the data, such as invoices, purchase orders, checks, freight and shipping bills, and others. Its solutions deliver the extracted data to applications comprising document and content management, enterprise resource planning, or customer relationship management. The company develops and markets its software solutions to a range of customers that automatically classifies, recognizes, and understands data processed into the organization systems. It processes, validates, and integrates data into ERP, CRM, and workflow systems. Its eFLOW Unified Content platform solution performs business-critical key data capture, lying within incoming documents, such as paper forms, eForms, fax, image files, microfiche, and electronic. The company serves end-user customers, value-added resellers, distributors, and system integrators. Top Image Systems Ltd. was founded in 1991 and is headquartered in Ramat Gan, Israel.

Immersion Company Profile

Immersion Corporation creates, designs, develops, and licenses haptic technologies in North America, Europe, and Asia. Its technologies allow people to use their sense of touch when they engage with various digital products. The company offers TouchSense Lite and TouchSense Premium toolkits that enable original equipment manufacturers and their suppliers to add customized haptic technologies to their own branded devices and other products. It also provides TouchSense Software Development Kits, which consist of design tools, integration software, and effect libraries that allow for the design, encoding, and playback of tactile effects in mobile content, including games, ads, and video. In addition, the company offers TouchSense Force, which comprises design tools, APIs, reference designs, and firmware for the PC/Console gaming/virtual reality markets. Further, the company licenses its patents to implement the licensed software to customers. Additionally, it provides engineering and integration services, design kits for prototyping, authoring tools, application programming interfaces, and platform independent solutions. The company offers its products to mobile communications, wearables, and consumer electronics; console and PC gaming; automotive; and medical markets. Immersion Corporation was founded in 1993 and is headquartered in San Jose, California.

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