Brilliant Earth Group (NASDAQ:BRLT) versus Immersion (NASDAQ:IMMR) Head to Head Survey

Immersion (NASDAQ:IMMR) and Brilliant Earth Group (NASDAQ:BRLT) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Immersion and Brilliant Earth Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immersion	0	2	1	0	2.33
Brilliant Earth Group	1	7	0	0	1.88

Immersion presently has a consensus price target of $13.50, suggesting a potential upside of 93.97%. Brilliant Earth Group has a consensus price target of $1.74, suggesting a potential upside of 18.20%. Given Immersion’s stronger consensus rating and higher possible upside, research analysts plainly believe Immersion is more favorable than Brilliant Earth Group.

Insider & Institutional Ownership

60.6% of Immersion shares are held by institutional investors. Comparatively, 70.4% of Brilliant Earth Group shares are held by institutional investors. 10.6% of Immersion shares are held by insiders. Comparatively, 83.2% of Brilliant Earth Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Immersion has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Earnings & Valuation

This table compares Immersion and Brilliant Earth Group”s revenue, earnings per share 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	20.47
Brilliant Earth Group	$449.28 million	0.33	-$3.63 million	($0.29)	-5.07

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

Profitability

This table compares Immersion and Brilliant Earth Group’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%
Brilliant Earth Group	-0.66%	-15.48%	-5.99%

Dividends

Immersion pays an annual dividend of $0.30 per share and has a dividend yield of 4.3%. Brilliant Earth Group pays an annual dividend of $0.25 per share and has a dividend yield of 17.0%. 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. Brilliant Earth Group pays out -86.2% of its earnings in the form of a dividend. Brilliant Earth Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Immersion beats Brilliant Earth Group on 10 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 Brilliant Earth Group

Brilliant Earth Group, Inc. designs, procures, and sells diamonds, gemstones, and jewelry in the United States and internationally. The company’s product assortment and merchandise include a collection of diamond engagement rings, wedding and anniversary rings, gemstone rings, and fine jewelry. It sells directly to consumers through its omnichannel sales platform, including e-commerce and showrooms. Brilliant Earth Group, Inc. was founded in 2005 and is headquartered in San Francisco, California.