America’s Car-Mart (NASDAQ:CRMT) vs. Immersion (NASDAQ:IMMR) Head to Head Analysis

Immersion (NASDAQ:IMMR) and America’s Car-Mart (NASDAQ:CRMT) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Risk and Volatility

Immersion has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Institutional and Insider Ownership

60.6% of Immersion shares are owned by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are owned by institutional investors. 10.6% of Immersion shares are owned by company insiders. Comparatively, 18.4% of America’s Car-Mart shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Immersion and America’s Car-Mart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Immersion	0.26%	0.80%	0.35%
America’s Car-Mart	-18.21%	-15.19%	-4.73%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Immersion and America’s Car-Mart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immersion	0	2	1	0	2.33
America’s Car-Mart	1	2	0	0	1.67

Immersion currently has a consensus target price of $13.50, indicating a potential upside of 82.43%. America’s Car-Mart has a consensus target price of $14.00, indicating a potential upside of 636.84%. Given America’s Car-Mart’s higher possible upside, analysts clearly believe America’s Car-Mart is more favorable than Immersion.

Earnings and Valuation

This table compares Immersion and America’s Car-Mart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Immersion	$1.73 billion	0.14	$4.52 million	$0.14	52.86
America’s Car-Mart	$1.28 billion	0.01	-$139.11 million	($23.80)	-0.08

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

Summary

Immersion beats America’s Car-Mart on 10 of the 14 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 America’s Car-Mart

America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.