Nevertheless, the stock is enjoying a wonderful year. It is up 95% since it began trading in February. The market is optimistic about ExOne’s future. The stock is trading at a 92 forward P/E, while Stratasys is trading 32 times forward P/E and 3D Systems is trading at a forward P/E of 33.
Would ExOne go into retail with a purchase like Stratasys, Ltd. (NASDAQ:SSYS)? I don’t think it’s plausible. There is too much of a gap between what the company produces now and what desktop printing is.
Who will win?
Just buying MakerBot would not be a game-changer for Stratasys, Ltd. (NASDAQ:SSYS). The company must leverage this purchase, drive more marketing power, and establish its leading position. 3D Systems would probably be more active on the desktop front as it realizes that its main competitor has just become more powerful.
Both companies are similarly valued not only by forward P/E, but by price-to-sales too. Stratasys trades at 10.4 times sales, while 3D Systems trades at 11.4 times sales. Analysts are expecting more upside for these stocks. Mean target prices for Stratasys, Ltd. (NASDAQ:SSYS) and 3D Systems are $93.31 and $51.93, respectively.
The battle between two companies might help grow the market, as they will spend more marketing dollars. This would lead to more product awareness among potential customers. Currently, none of the companies is dominating the market, and it might stay like that in the near future.
Bottom line
Stratasys, Ltd. (NASDAQ:SSYS) has made a great purchase and has shown that it is serious about desktop 3D printing. I think this purchase strengthens the company and is good for the stock. 3D Systems faces more competition, but in the short-term, it would not be disruptive. This year’s earnings estimates for these companies have been slightly revised upward during the last 90 days. Both stocks present a good way to get exposure to 3D printing.
ExOne is a risky bet. The stock has gone a long way since IPO. The company depends on large-scale sales, which would be difficult to get given the weak economy. The 15.4 price-to-sales ratio also indicates the stock has gone too far too fast.
With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the “made in China” era. Well, it may be here.
Vladimir Zernov has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Stratasys, and The ExOne Company. 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.
The article Stratasys Breaks Into Desktop 3D Printing originally appeared on Fool.com.
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