3D Systems Corporation (DDD): Is Stratasys, Ltd. (SSYS) Really the New Top 3-D Printing Stock?

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Here’s something to ponder, though. Even on the high end, Stratasys’ projected non-GAAP earnings growth is lower than 3D Systems’, which calls for up to 38% more earnings per share in 2013 after accounting for the stock split. Additionally, Stratasys has a far greater degree of divergence between its GAAP results and its adjusted results than does 3D Systems. Add that all up: a higher P/E ratio, a projected GAAP net loss, full-year revenue growth for 2013 guided to a maximum of 24% higher than 2012’s result, and adjusted EPS growth of 31% — both of which come in lower than the upper bound of 3D Systems’ guidance range. Why is Stratasys now up 7% when 3D Systems fell on better numbers?

Keep in mind that the company’s 2013 guidance range is slightly ahead of the analyst consensus on both top and bottom lines, which called for $421 million in revenue (Stratasys sees between $430 million and $445 million) and earnings of $1.86 per share. Also keep in mind that 3D Systems’ guidance was also ahead of the consensus on its high end, and the stock fell by double digits.

Foolish final thoughts
Stocks can behave in strange ways, and this appears to be an excellent example. There’s no obvious reason why 3D Systems should fall and Stratasys rise under rather similar circumstances, and after both reports are in, it seems more evident that while both are quite dearly valued, Stratasys is (and will likely continue to be) the pricier of the two, barring a correction like the one that hit 3D Systems last week. Investors seem to now expect greater things out of the Objet-augmented Stratasys, but this hope may be somewhat misplaced. After all, 3D Systems still anticipates a better growth rate, whether or not that growth is acquisition-driven.

The article Is Stratasys Really the New Top 3-D Printing Stock? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool recommends 3D Systems and Stratasys. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems.

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