Graham (NYSE:GHM) & 3Dx Industries (OTCMKTS:DDDX) Financial Survey

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

Analyst Ratings

This is a summary of current recommendations and price targets for 3Dx Industries and Graham, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
3Dx Industries	0	0	0	0	0.00
Graham	0	3	1	1	2.60

Graham has a consensus target price of $60.00, indicating a potential downside of 21.00%. Given Graham’s stronger consensus rating and higher possible upside, analysts clearly believe Graham is more favorable than 3Dx Industries.

Volatility & Risk

3Dx Industries has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Graham has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

69.5% of Graham shares are held by institutional investors. 6.0% of Graham shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
3Dx Industries	-171.91%	N/A	N/A
Graham	6.00%	12.44%	5.65%

Valuation and Earnings

This table compares 3Dx Industries and Graham”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
3Dx Industries	$290,000.00	1.33	-$560,000.00	($0.01)	-0.35
Graham	$209.90 million	3.98	$12.23 million	$1.24	61.25

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

Summary

Graham beats 3Dx Industries on 14 of the 15 factors compared between the two stocks.

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.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.