Immersion Corporation (NASDAQ: IMMR) and Qumu Corporation (NASDAQ:QUMU) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations for Immersion Corporation and Qumu Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Immersion Corporation 0 1 4 0 2.80
Qumu Corporation 0 0 0 0 N/A

Immersion Corporation presently has a consensus price target of $10.75, indicating a potential upside of 80.98%. Given Immersion Corporation’s higher possible upside, analysts clearly believe Immersion Corporation is more favorable than Qumu Corporation.

Institutional & Insider Ownership

73.2% of Immersion Corporation shares are owned by institutional investors. Comparatively, 24.4% of Qumu Corporation shares are owned by institutional investors. 7.2% of Immersion Corporation shares are owned by company insiders. Comparatively, 14.3% of Qumu Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Immersion Corporation has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Qumu Corporation has a beta of -0.51, indicating that its stock price is 151% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Immersion Corporation -190.18% -100.50% -43.28%
Qumu Corporation -28.91% -53.51% -21.86%

Valuation & Earnings

This table compares Immersion Corporation and Qumu Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Immersion Corporation $57.09 million 3.04 -$39.38 million ($2.45) -2.42
Qumu Corporation $31.68 million 0.71 -$11.17 million ($0.96) -2.48

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

Immersion Corporation Company Profile

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.

Qumu Corporation Company Profile

Qumu Corporation (Qumu) is an enterprise video content management software company. The Company is engaged in providing tools businesses need to create, manage, secure, deliver and measure their videos. The Company operates through the enterprise video content management software business segment. Its video content management software solutions allow organizations to create, capture, organize and deliver content across the extended enterprise to a range of end points, including mobile devices and thick or thin clients. Qumu’s video platform supports both live and on-demand streaming. The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a term software license or a cloud-hosted software as a service (SaaS). Qumu Capture Studio is a portable software-enabled device that records, edits and publishes video and presentation content.

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