3D Systems Corporation (DDD), Stratasys, Ltd. (SSYS): How Should You Examine This Space?

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It appears that 3D Systems Corporation (NYSE:DDD)’ competitive advantage over its peers lies in its usability and affordability. 3D Systems Corporation (NYSE:DDD) markets a variety of printers such as the Cube 3D model, which is priced around $1,200. In comparison, Stratasys cheapest models are priced at around $10,000 as Stratasys is clearly aiming at the very high end of the market. 3D Systems Corporation (NYSE:DDD)’ Cube 3D takes an intuitive approach, and its design specifications have been tailored for users of all ages and levels.

Staples, Inc. (NASDAQ:SPLS), the world’s largest office products company, recently became the first major U.S. retailer to announce the availability of 3D printers in its stores and website and is currently offering Cube 3D printers exclusively. Avi Reichental, 3D Systems Corporation (NYSE:DDD)’ President and Chief Executive Officer said “Staples, Inc. (NASDAQ:SPLS) is the ideal partner to deliver the only true plug-and-play 3D printer extending our reach and consumer access.”

The small but wise – ExOne Co (NASDAQ:XONE)

ExOne Co (NASDAQ:XONE) is a global provider of three-dimensional printing machines and printed products to industrial consumers. The company’s business primarily consists of manufacturing and selling 3D printing machines and printing products to specification for customers using in-house 3D printers. It is a smaller player in the sector and the smallest among the three companies. With a hot initial public offering to its credit, shares of ExOne Co (NASDAQ:XONE) soared 47% on their first day of trading back in Feb this year.

In a recent interview with Reuters, ExOne Co (NASDAQ:XONE)’s CEO Kent Rockwell said that he expects the company to exceed a 50% gross margin within three years. He also indicated that the company intends to open new production service centers as part of an expansion in emerging markets. The company is aiming to reach annual revenue of $100 million within three years, about three times 2012 revenue of $28 million.

The foolish bottom line

I am bullish on the three stocks operating in a high-growth industry. 3D printing is a useful technology, and I expect it will reach almost every household and business within a decade. The three stocks mentioned have demonstrated real growing revenues and profits on a consistent basis. Furthermore, the 3D printing market is still in the early stages of growth and more companies are going to enter the market and benefit from the trend. There is virtually no limit on what can be printed from these types of printers. The 3D printing industry is a classic example of the saying “the trend is your friend,” but in this case the trend is here to stay for the long haul.

The article These 3D Printing Companies Are Printing Money originally appeared on Fool.com is written by Yaniv Hirsch.

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