Critical Review: Desktop Metal (NYSE:DM) versus Next Hydrogen Solutions (OTC:NXHSF)

Desktop Metal (NYSE:DMGet Rating) and Next Hydrogen Solutions (OTC:NXHSFGet Rating) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Desktop Metal and Next Hydrogen Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Desktop Metal $112.41 million 5.44 -$240.33 million ($0.90) -2.17
Next Hydrogen Solutions N/A N/A N/A N/A N/A

Next Hydrogen Solutions has lower revenue, but higher earnings than Desktop Metal.

Profitability

This table compares Desktop Metal and Next Hydrogen Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Desktop Metal -173.46% -14.59% -13.30%
Next Hydrogen Solutions N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Desktop Metal and Next Hydrogen Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Desktop Metal 0 3 3 0 2.50
Next Hydrogen Solutions 0 0 0 0 N/A

Desktop Metal presently has a consensus price target of $10.25, suggesting a potential upside of 425.64%. Next Hydrogen Solutions has a consensus price target of $2.50, suggesting a potential upside of 100.00%. Given Desktop Metal’s higher possible upside, analysts plainly believe Desktop Metal is more favorable than Next Hydrogen Solutions.

Insider and Institutional Ownership

39.2% of Desktop Metal shares are held by institutional investors. 16.8% of Desktop Metal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Desktop Metal beats Next Hydrogen Solutions on 5 of the 8 factors compared between the two stocks.

About Desktop Metal (Get Rating)

Desktop Metal, Inc. engages in manufacture and sale of additive manufacturing technologies for engineers, designers, and manufacturers in the Americas, Europe, the Middle East, Africa, and the Asia- Pacific. The company offers Production System, an industrial manufacturing solution; Shop System, a mid-volume binder jetting platform; X-series platform for serial production binder jet 3D printed metal, ceramic, or composite parts, balancing speed, and quality; and Studio System, an office metal 3D printing system; and Fiber platform that offers a desktop 3D printer. In addition, it provides Xtreme 8K platform, designed for industrial, high-temperature production of end-use photopolymer parts, and uses high-powered light sources with a water-cooled DLP chip; Einstein series, designed for dental professionals which offers 3D printing; P4K platform offers series of advanced DLP printer models designed for volume production in precision applications; Envision One platform; which leverages patented CDLM technology for high-volume production of end-use photopolymer parts; D4K Pro platform, designed for jewelry and chairside settings; S-Max platform, which provides digital casting solution; and Robotic Additive Manufacturing, or RAM, platform that offers robotic 3D printing solutions. Further, the company offers S-Print, an entry-level solution for prototypes and small series production in digital casting applications; and 3D-Bioplotter platform which offers biofabrication solution. Additionally, the company provides binder jetting materials, DLP and CDLM photopolymer resins, BMD materials, micro-AFP materials, and bioprinting materials. It serves automotive, aerospace, healthcare and dental, consumer products, heavy industry, machine design, and research and development industries. The company was founded in 2015 and is headquartered in Burlington, Massachusetts.

About Next Hydrogen Solutions (Get Rating)

Next Hydrogen Solutions Inc. designs, manufactures, and sells water electrolyzers to convert intermittent renewable electric power sources into clean hydrogen. The company was incorporated in 2007 and is headquartered in Mississauga, Canada.

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