Palo Alto Networks (NASDAQ: IMMR) and Immersion (NASDAQ:IMMR) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Earnings & Valuation
This table compares Palo Alto Networks and Immersion’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Palo Alto Networks||$1.76 billion||11.11||-$216.60 million||($1.71)||-123.27|
|Immersion||$35.01 million||10.11||-$45.29 million||($1.19)||-9.66|
This table compares Palo Alto Networks and Immersion’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palo Alto Networks||-8.65%||-8.51%||-1.64%|
Institutional and Insider Ownership
82.0% of Palo Alto Networks shares are held by institutional investors. Comparatively, 80.2% of Immersion shares are held by institutional investors. 4.8% of Palo Alto Networks shares are held by company insiders. Comparatively, 18.6% of Immersion shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings and price targets for Palo Alto Networks and Immersion, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palo Alto Networks||1||4||35||0||2.85|
Palo Alto Networks presently has a consensus target price of $201.05, suggesting a potential downside of 4.62%. Immersion has a consensus target price of $13.42, suggesting a potential upside of 16.67%. Given Immersion’s higher probable upside, analysts clearly believe Immersion is more favorable than Palo Alto Networks.
Risk & Volatility
Palo Alto Networks has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Immersion has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Immersion beats Palo Alto Networks on 9 of the 14 factors compared between the two stocks.
About Palo Alto Networks
Palo Alto Networks, Inc. provides security platform solutions worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats; Advanced Endpoint Protection, which prevents cyber-attacks that exploit software vulnerabilities on various fixed, mobile, and virtual endpoints and servers; and Threat Intelligence Cloud, which offers central intelligence capabilities, security for software as a service applications, and automated delivery of preventative measures against cyber-attacks. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances deployed on an end-customer's network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection, and firewall, as well as cyber-attack, threat intelligence, and content control. In addition, the company provides support services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration, as well as online and classroom-style education training services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was founded in 2005 and is headquartered in Santa Clara, California.
Immersion Corporation creates, designs, develops, and licenses haptic technologies in North America, Europe, and Asia. Its technologies allow people to use their sense of touch when they engage with various digital products. The company offers TouchSense Lite and TouchSense Premium toolkits that enable original equipment manufacturers and their suppliers to add customized haptic technologies to their own branded devices and other products. It also provides TouchSense Software Development Kits, which consist of design tools, integration software, and effect libraries that allow for the design, encoding, and playback of tactile effects in mobile content, including games, ads, and video. In addition, the company offers TouchSense Force, which comprises design tools, APIs, reference designs, and firmware for the PC/Console gaming/virtual reality markets. Further, the company licenses its patents to implement the licensed software to customers. Additionally, it provides engineering and integration services, design kits for prototyping, authoring tools, application programming interfaces, and platform independent solutions. The company offers its products to mobile communications, wearables, and consumer electronics; console and PC gaming; automotive; and medical markets. Immersion Corporation was founded in 1993 and is headquartered in San Jose, California.
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