Radcom (RDCM) and Immersion Corporation (NASDAQ:IMMR) Critical Survey

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

Valuation and Earnings

This table compares Radcom and Immersion Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Radcom $32.72 million 6.68 -$1.14 million ($0.11) -170.00
Immersion Corporation $51.85 million 3.76 -$17.43 million ($2.03) -3.29

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

Risk & Volatility

Radcom has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Immersion Corporation has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Insider & Institutional Ownership

18.2% of Radcom shares are owned by institutional investors. Comparatively, 76.1% of Immersion Corporation shares are owned by institutional investors. 69.0% of Radcom shares are owned by company insiders. Comparatively, 7.2% of Immersion Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Radcom -3.90% -2.19% -1.64%
Immersion Corporation -113.47% -43.56% -22.98%

Analyst Recommendations

This is a summary of recent ratings and price targets for Radcom and Immersion Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radcom 0 0 2 0 3.00
Immersion Corporation 0 1 4 0 2.80

Radcom currently has a consensus price target of $27.00, indicating a potential upside of 44.39%. Immersion Corporation has a consensus price target of $10.75, indicating a potential upside of 60.93%. Given Immersion Corporation’s higher possible upside, analysts clearly believe Immersion Corporation is more favorable than Radcom.

Summary

Radcom beats Immersion Corporation on 8 of the 13 factors compared between the two stocks.

Radcom Company Profile

RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.

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.

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