Contrasting LSC Communications (OTCMKTS:LKSDQ) & Stratasys (NASDAQ:SSYS)

LSC Communications (OTCMKTS:LKSDQ) and Stratasys (NASDAQ:SSYS) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

75.8% of Stratasys shares are held by institutional investors. 3.9% of LSC Communications shares are held by company insiders. Comparatively, 4.3% of Stratasys shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for LSC Communications and Stratasys, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LSC Communications	0	0	0	0	0.00
Stratasys	0	1	4	0	2.80

Stratasys has a consensus price target of $12.20, suggesting a potential upside of 15.64%. Given Stratasys’ stronger consensus rating and higher possible upside, analysts plainly believe Stratasys is more favorable than LSC Communications.

Profitability

This table compares LSC Communications and Stratasys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LSC Communications	N/A	N/A	N/A
Stratasys	-19.02%	-1.86%	-1.43%

Valuation and Earnings

This table compares LSC Communications and Stratasys”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LSC Communications	N/A	N/A	N/A	N/A	N/A
Stratasys	$572.46 million	1.32	-$120.28 million	($1.50)	-7.03

LSC Communications has higher earnings, but lower revenue than Stratasys.

Summary

Stratasys beats LSC Communications on 6 of the 9 factors compared between the two stocks.

About LSC Communications

LSC Communications, Inc., together with its subsidiaries, provides various traditional and digital print, print-related services, and office products in North America, Europe, and Mexico. It operates through Magazines, Catalogs and Logistics; Book; Office Products; Mexico; and Other segments. The Magazines, Catalogs and Logistics segment produces magazines and catalogs, as well as provides logistics solutions to the company and other third parties. This segment also provides other print-related services, including mail services. The Book segment produces books for publishers; and provides supply-chain management, and warehousing and fulfillment services, as well as e-book formatting for book publishers. The Office Products segment manufactures and sells branded and private label products in various categories, such as filing products, envelopes, note-taking products, binder products, and forms. The Mexico segment produces magazines, catalogs, statements, forms, and labels. The Other segment provides directories; and outsourced print procurement and management services. The company serves printed products service retailers, including catalogers and merchandisers; publishers of magazines, books, and directories; and office superstores, office supply wholesalers, independent contract stationers, mass merchandisers, and retailers and e-commerce resellers through the United States Postal Service or foreign postal services, as well as through direct shipment and online retailers. LSC Communications, Inc. was founded in 2016 and is based in Chicago, Illinois. On April 13, 2020, LSC Communications, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

About Stratasys

Stratasys Ltd. provides connected polymer-based 3D printing solutions. It offers range of 3D printing systems, which includes polyjet printer, Fused Deposition Modeling (FDM) printers, stereolithography printing systems, origin P3 printers, and selective absorption fusion printer for additive manufacturing, and tooling and rapid prototyping for various vertical markets, such as automotive, aerospace, consumer products and healthcare. The company provides consumable materials, including 3D printing materials comprising FDM, polyjet, and stereolithography materials for manufacturing applications, such as jigs and fixtures, investment casting, and injection mold or composite tooling applications; and other material. In addition, it offers software and services, which includes cloud, desktop and mobile technologies comprising GrabCAD, an additive manufacturing platform to manage production-scale operations; and GrabCAD Print, job programming software enables the unique features of 3D printing technologies, such as creating lightweight, structurally sound infills for FDM, and multi-material and color and material management for polyjet. The company also provides GrabCAD Shop including scheduling, remote monitoring, and analytics; GrabCAD Connect provides two-way SDK integration for third-party software applications; and GrabCAD Community, an online community of professional engineers, designers, manufacturers and students who share their practices through tutorials, discussion forums, design/print challenges, and 3D content. Further, it offers GrabCAD Shop, which simplifies 3D printing shop workflow; GrabCAD Streamline Software Development Kit (SDK) to support enterprise goals such as system connectivity, compliance, and workflow automation; and Grab CAD Software Partner program for independent software vendors. The company sells its products through a network of resellers and independent sales agents worldwide. Stratasys Ltd. is headquartered in Eden Prairie, Minnesota.