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 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!