Immersion Corporation (IMMR) vs Ribbon Communications Inc. (RBBN)

Immersion Corporation and Ribbon Communications Inc. are both Software Application companies. Immersion Corporation and Ribbon Communications Inc. are of similar size ($253.9M and $237.1M). Ribbon Communications Inc. trades at the lower P/E: 14.8× against 19.9×. Immersion Corporation grew revenue faster over the last twelve months: −0.88% against −7.62%. Ribbon Communications Inc. has the higher net margin (1.96% vs 0.60%) and the lower return on invested capital (−2.94% vs 4.26%). Across the 22 metrics below, Immersion Corporation leads on 15 and Ribbon Communications Inc. on 7.

Valuation

Metric IMMR RBBN Software Application median
P/E 19.86 14.78 25.41
P/S 0.13 0.30 2.73
P/B 0.41 0.60 2.57
Price to free cash flow 3.77 34.67 17.58
EV/EBITDA 1.93 16.99 15.36
EV/Sales 0.08 0.65 2.59
Earnings yield 5.04% 6.77% 0.00%
Free cash flow yield 26.53% 2.88% 2.24%

Profitability

Metric IMMR RBBN Software Application median
Gross margin 21.54% 48.78% 67.03%
Operating margin 1.86% (3.99%) 0.00%
Net margin 0.60% 1.96% 0.00%
Free cash flow margin 3.53% 0.85% 5.01%
Return on equity 1.87% 4.09% 0.00%
Return on assets 0.85% 1.37% 0.00%
Return on invested capital 4.26% (2.94%) 0.00%

Growth

Metric IMMR RBBN Software Application median
Revenue growth (TTM) (0.88%) (7.62%) 12.48%
EPS growth (last fiscal year) (95.06%) 170.97% 32.26%
Revenue growth, 5-year CAGR 124.34% 0.02% 14.21%
Net income growth, 5-year CAGR (3.52%) (14.86%) 0.00%

Health

Metric IMMR RBBN Software Application median
Debt to equity 0.22 0.84 0.02
Current ratio 2.14 1.31 1.52
Net debt to EBITDA (1.60) 3.89 0.08

Dividend

Metric IMMR RBBN Software Application median
Dividend yield 4.96% — 0.95%
Payout ratio 1.01 — 0.29

Size

Metric IMMR RBBN Software Application median
Market cap 237.09m 253.93m 357.77m

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