Critical Survey: 3D Systems (NYSE:DDD) versus Stratasys (NASDAQ:SSYS)

3D Systems (NYSE:DDDGet Free Report) and Stratasys (NASDAQ:SSYSGet Free Report) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Profitability

This table compares 3D Systems and Stratasys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
3D Systems -64.06% -43.70% -15.07%
Stratasys -19.02% -1.86% -1.43%

Analyst Recommendations

This is a summary of recent ratings for 3D Systems and Stratasys, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3D Systems 0 3 2 0 2.40
Stratasys 0 1 4 0 2.80

3D Systems currently has a consensus price target of $3.67, indicating a potential upside of 106.57%. Stratasys has a consensus price target of $12.20, indicating a potential upside of 12.55%. Given 3D Systems’ higher probable upside, equities research analysts plainly believe 3D Systems is more favorable than Stratasys.

Risk and Volatility

3D Systems has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Stratasys has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

64.5% of 3D Systems shares are held by institutional investors. Comparatively, 75.8% of Stratasys shares are held by institutional investors. 4.9% of 3D Systems shares are held by company insiders. Comparatively, 4.3% of Stratasys shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares 3D Systems and Stratasys”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3D Systems $440.12 million 0.55 -$255.59 million ($2.09) -0.85
Stratasys $572.46 million 1.61 -$120.28 million ($1.50) -7.23

Stratasys has higher revenue and earnings than 3D Systems. Stratasys is trading at a lower price-to-earnings ratio than 3D Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Stratasys beats 3D Systems on 10 of the 14 factors compared between the two stocks.

About 3D Systems

(Get Free Report)

3D Systems Corporation provides 3D printing and digital manufacturing solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company offers 3D printers technologies, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, color jet printing, polymer extrusion, and extrusion and SLA based bioprinting that transform digital data input generated by 3D design software, computer aided design (CAD) software, or other 3D design tools into printed parts. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental materials, and biocompatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as solutions for product design, simulation, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection and manufacturing workflows under the Geomagic brand. Further, it offers 3D Sprint and 3DXpert, a proprietary software to prepare and optimize CAD data and manage the additive manufacturing processes, which provides automated support building and placement, build platform management, print simulation, and print queue management; and Bioprint Pro, a software solution that allows researchers to design and bioprint repeatable experiments. Additionally, the company provides maintenance and training services; manufacturing services; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable goods, government, defense, technology, jewelry, electronic, education, consumer goods, energy, biotechnology, and other industries through direct sales force, channel partners, and appointed distributors. 3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill, South Carolina.

About Stratasys

(Get Free Report)

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.

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