3D Systems Corporation (DDD), Stratasys, Ltd. (SYSS): Should You Buy Into 3D Printing?

Page 1 of 2

Beginning in the late 1980’s, 3D printing has been around much longer than most people think. Over the past few years advances in technology, decreased costs, and larger demand has brought 3D into the eyes of investors. 3D printing is providing lots of hype, with potential uses in many industries including aerospace, automobile, construction, and maybe even medicine. With only a handful of public companies now is a good time to get in on the hype of 3D printing. Revenue from the industry comes from manufacturing products in-house, building printers for customers, services on printers, selling materials, and now even manufacturing personal printers. Forecasts suggest that by 2016 3D printing could be a $3 billion industry, growing at about 15% each year.

3D Systems Corporation (NYSE:DDD)3D Systems Corporation (NYSE:DDD)
The name says it all. 3D Systems Corporation is one of the leading innovators of the 3D printing revolution. In 1986 3D Systems founder Chuck Hull developed and patented the system of stereolithography. Twenty seven years later 3D is now a growing company with a market cap over $3 billion. 3D offers both professional and individual household printers. They just launched their first personal printer, The Cube, in 2012 which sells for around $1,300 each. In 2011 3D posted revenue of $230 million, up from $160 million in 2010. EPS follows the same trend, increasing from $0.44 in 2010 to $0.72 in 2011. 2012 Q4 earnings are scheduled to be released on the Feb. 25, but analysts are expecting the trend of increased revenue to continue. Trading at around 99 P/E, buying 3D is an expensive purchase right now, but 3D is currently the leader of the market and is still generating momentum by targeting households and small businesses to buy their products.

Stratasys, Ltd. (NASDAQ:SSYS)
Founded in 1989, Stratasys, Ltd. manufacturers in-office prototyping and digital manufacturing printers for various companies. Stratasys represents the other side of the 3D printing market by supplying large industrial companies. Like 3D Systems, Stratasys has been increasing revenue and EPS for the past few years. In 2010 revenue was $117 million and EPS was 0.45 per share. In 2011 revenue and EPS were $155 million and 0.99, respectively. Earnings will be released in early March, but 2012 should be another year of growth. Stratasys management has also done a good job, with the company holding zero debt as of the latest quarter, something 3D does not have. In December of 2012 Stratasys merged with Israel-based Objet Geometries. Objet has almost 50 patents revolving around 3D printing. Objet offers a large base of 3D printers to add to Stratasys and access to markets in the Middle East and Asia. The $121 million in revenue that Objet brought in in 2011 also will help Stratasys catch up to 3D Systems.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!