Critical Comparison: Twin Disc (NASDAQ:TWIN) and 3Dx Industries (OTCMKTS:DDDX)

Twin Disc (NASDAQ:TWIN) and 3Dx Industries (OTCMKTS:DDDX) are both small-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Valuation and Earnings

This table compares Twin Disc and 3Dx Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twin Disc	$340.74 million	0.72	-$1.89 million	$0.02	849.50
3Dx Industries	$290,000.00	1.79	-$560,000.00	($0.01)	-0.47

3Dx Industries has lower revenue, but higher earnings than Twin Disc. 3Dx Industries is trading at a lower price-to-earnings ratio than Twin Disc, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Twin Disc and 3Dx Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twin Disc	0.10%	0.23%	0.10%
3Dx Industries	-171.91%	N/A	N/A

Risk and Volatility

Twin Disc has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, 3Dx Industries has a beta of 2.83, indicating that its share price is 183% more volatile than the S&P 500.

Insider and Institutional Ownership

65.3% of Twin Disc shares are held by institutional investors. 22.1% of Twin Disc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Twin Disc and 3Dx Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Disc	1	1	1	0	2.00
3Dx Industries	0	0	0	0	0.00

Twin Disc presently has a consensus target price of $12.00, indicating a potential downside of 29.37%. Given Twin Disc’s stronger consensus rating and higher possible upside, research analysts clearly believe Twin Disc is more favorable than 3Dx Industries.

Summary

Twin Disc beats 3Dx Industries on 11 of the 14 factors compared between the two stocks.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.

About 3Dx Industries

3DX Industries, Inc. manufactures and sells consumer and corporate products using an additive manufacturing method through 3D metal printing technology, and conventional precision manufacturing processes. The company was formerly known as Amarok Resources, Inc. and changed its name to 3DX Industries, Inc. in November 2013. 3DX Industries, Inc. was incorporated in 2008 and is based in Ferndale, Washington.