Boot Barn (NYSE:BOOT) versus Immersion (NASDAQ:IMMR) Head to Head Review

Immersion (NASDAQ:IMMR) and Boot Barn (NYSE:BOOT) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Volatility and Risk

Immersion has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Profitability

This table compares Immersion and Boot Barn’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%
Boot Barn	10.45%	18.82%	9.98%

Valuation & Earnings

This table compares Immersion and Boot Barn”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Immersion	$1.73 billion	0.13	$4.52 million	$0.34	19.72
Boot Barn	$2.42 billion	1.74	$225.88 million	$8.26	17.00

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

Insider and Institutional Ownership

60.6% of Immersion shares are held by institutional investors. 10.6% of Immersion shares are held by company insiders. Comparatively, 0.7% of Boot Barn shares are held 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.

Dividends

Immersion pays an annual dividend of $0.30 per share and has a dividend yield of 4.5%. Boot Barn pays an annual dividend of $0.50 per share and has a dividend yield of 0.4%. Immersion pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boot Barn pays out 6.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Immersion and Boot Barn, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immersion	0	2	1	0	2.33
Boot Barn	0	2	13	0	2.87

Immersion presently has a consensus price target of $13.50, indicating a potential upside of 101.34%. Boot Barn has a consensus price target of $191.46, indicating a potential upside of 36.33%. Given Immersion’s higher possible upside, research analysts plainly believe Immersion is more favorable than Boot Barn.

Summary

Boot Barn beats Immersion on 11 of the 16 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 Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.