Financial Review: Wearable Devices (NASDAQ:WLDS) versus Corsair Gaming (NASDAQ:CRSR)

Corsair Gaming (NASDAQ:CRSR) and Wearable Devices (NASDAQ:WLDS) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Profitability

This table compares Corsair Gaming and Wearable Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corsair Gaming	2.36%	13.10%	6.88%
Wearable Devices	N/A	N/A	N/A

Insider & Institutional Ownership

25.7% of Corsair Gaming shares are owned by institutional investors. Comparatively, 0.2% of Wearable Devices shares are owned by institutional investors. 54.5% of Corsair Gaming shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Corsair Gaming and Wearable Devices, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corsair Gaming	1	2	4	1	2.62
Wearable Devices	1	0	0	0	1.00

Corsair Gaming presently has a consensus price target of $12.14, indicating a potential downside of 6.02%. Given Corsair Gaming’s stronger consensus rating and higher probable upside, research analysts clearly believe Corsair Gaming is more favorable than Wearable Devices.

Valuation and Earnings

This table compares Corsair Gaming and Wearable Devices”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corsair Gaming	$1.47 billion	0.95	-$12.47 million	$0.30	43.07
Wearable Devices	$647,000.00	5.49	-$8.11 million	N/A	N/A

Wearable Devices has lower revenue, but higher earnings than Corsair Gaming.

Summary

Corsair Gaming beats Wearable Devices on 10 of the 12 factors compared between the two stocks.

About Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.

About Wearable Devices

Wearable Devices Ltd. engages in the development of a non-invasive neural input interface for controlling digital devices using subtle touchless finger movements. The company offers Mudra development kits that enable users to control digital devices, including consumer electronics, smart watches, smartphones, AR glasses, VR headsets, televisions, personal computers and laptop computers, drones, robots, and others through finger movements and hand gestures; and SNC sensor module, an operating system (OS) software package and algorithm package to customers. It also provides Mudra Band, a neural input wristband, which allows users to control Apple ecosystem devices, including iPhone, Mac computer, Apple TV, and iPad using subtle touchless finger movements and gestures; and Mudra XR wristband, a wearable controller for smart glasses and spatial computing that supports hands-free interaction. The company serves consumer electronics companies and brands, industrial manufacturing companies, information technology and software solutions providers, software development studios, academia and research universities, and B2C market. Wearable Devices Ltd. was incorporated in 2014 and is headquartered in Yokneam Illit, Israel.