3D Systems Corporation (DDD) and 3 Stocks to Benefit From the 3D Printing Boom

Stratasys, Ltd. (NASDAQ:SSYS)

Stratasys, Ltd. (NASDAQ:SSYS) is the second largest company in this industry, right behind 3D Systems Corporation (NYSE:DDD). For 2012, the company saw revenue growth of 30%. This is the lowest revenue growth of the group. But, it may have the ability to continue at a stable growth rate for the next few years.

Its gross margins are also strong at 51%. After the Objet merger, the company’s market cap grew by about $1.4 billion. With this merger having been completed, full year revenue is expected to be $420 million this year, a major jump from last year’s $215 million.

Because of the company’s steady growth in the past and new size due to its acquisition activities, the stock has a large upside potential this year.

This industry is likely to grow 25% annually for the next six years. Global 3D printing will be a $3.1 billion industry by 2016 and near $20 billion by 2020. This is a great industry for investors to take a look as it rapidly grows and becomes a game changer.

The right pick

Investors really can’t go too wrong with any of these stocks. ExOne is new and exciting, and has a lot of growth potential. But, with a fresh IPO, there is some inherent price and control risk. Stratasys will see some excellent growth after its merger, and may take away market share from the leader — 3D Systems Corporation (NYSE:DDD).

My pick for this lot is 3D Systems Corporation (NYSE:DDD). It is the most established and has steady growth. The company serves both companies and individuals, so it is slightly more diversified. It will likely lose some market share in the next year, but total industry growth will more than make up for it.

The article 3 Stocks to Benefit From the 3D Printing Boom originally appeared on Fool.com and is written by Austin Higgins.