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In this article, we will look at two US-based open trading entries in the booming 3D printing market.
The company is a 3D system Company (NYSE:DDD)
And Stratsys Limited (NASDAQ:SSYS).
We will look at some historical performance indicators, future growth estimates, and macroeconomic issues to try to determine which of these two indicators is a better winner at the moment.
Tracking thalalshere is the two companies we analyzed: What are the 3D printed stores for Morningstar January 14, 2013 data 2013?
This could be a year when 3D printing begins to implement its bill as the investor's 'next big thing.
In essence, 3D printing technology is not printing at all, but the manufacturing process of creating 3D objects layer by layer.
The process is CAD (
Computer-aided designand CAM (
Software programs with object digital models boot the 'printer' when building a final product layer or 'paper' at a time '.
The materials currently available are limited to various polymer-based substances and some metals.
Industrial applications for 3D printing have been around for a while and are growing.
Part replacement and prototype modeling are the two most common uses.
It was the technology that entered the consumer market that showed some investors signs of the dollar in their eyes.
In most homes, PCs are as common as a toaster.
Will the 3D printer follow the same explosive growth path?
This process has already begun and 2013 may accelerate this trend.
3D Systems is the first listed company to enter the consumer market in 2012 with its Cube 3D printer, for about $1,300.
Before entering the market, the consumer's choice was limited to the 3D printer kit, and the price of the competitor Stratasys Ltd. Mojo was also higher, less than $10,000!
Stratasys does classify Mojo as a commercial-grade printer.
In the latest work of the 2013 Consumer Electronics Show 3d system, the Cube X 3D printer won the CES best award for CNET editing.
If you look at the valuation of the 3D system and Stratasys, it is clear that the investment community believes that 3D printing may become a disruptive technology to change the game.
Both stocks have a high P/E ratio, but investors seem willing to pay for the expected growth.
The shareholders of both companies are very good.
Although the following chart from Yahoo Finance shows that DDD is doing better, it is rewarded year by year.
Compared with 250% of SYSS, the 3D system increased by 125%.
3D Systems believes in growth through acquisitions and has acquired 31 companies in the past three years alone.
Some investors see this as a sign of bearish, and prefer organic growth from.
However, the stock price itself says everything.
Although the company serves the business market through 3D printers, printed materials, design services and online services
Their demand for custom parts services is exactly what they are actively pursuing in the consumer market to make them stand out.
At the 2013 Consumer Electronics Show, the 3D system released a beta version of Cubify Capture, which will allow consumers to upload images of digital cameras, smartphones or tablets to the website.
These images will be converted to a computer model stored in the user account for later use with the Cube 3D printer.
This focus on the consumer market is in sharp contrast to the business model of Stratasys, America's largest listed competitor.
Stratasys Limited currently prefers to focus on professional users, mainly in the field of engineering.
They serve government agencies and manufacturing customers from a wide range of industries including aerospace, automotive, consumer appliances and electronics, education, medical and military industries. NASDAQ:INTC), Ford (NYSE:F), Nike (NYSE:NKE), Xerox (NYSE:XRX), and Boeing (NYSE:BA).
The recent merger with Objet, a private holding rival in Israel, will make Stratasys the largest 3D printing company in the United States by market value.
The merger will expand the technical base of the company's operations through three supplements-
Model of molten deposition (FDM)
For fast and cheap prototyping, inkjet
prototype based on PolyJet needs to be higher-
Level of detail and finer surface finish, as well as drop of stereo landscapeon-Demand ('DoD')
3D wax printer for investment casting.
The biggest benefit may be that the new Stratasys can now boast of its technology with over 120 different materials to produce the final product. .
Both analysts and investors seem to think the merger is very positive.
As analysts forecast for 2013, share prices continue to climb.
The average analyst estimate of earnings per share has risen from $1 to $1.
Between $33 and $1 in fiscal 2012. 68 in 2013.
The merger has added technical capabilities and a larger customer base to the new company.
However, history tells us that mergers and acquisitions are not always going smoothly.
The merger between Time Warner and AOL is now considered one of the worst in history.
To date, in addition to announcing the establishment of an executive committee to deal with consolidation, there are few articles on how the details of merging these Stratasys and Objet will progress.
While one might think the two stocks are 'too hot to handle', both are worth your consideration if you believe in growth investment.
Despite entering a larger and more capable strategy, the Financial Times recently reported that most analysts surveyed still believe that DDD performed better than the market.
DDD's news coverage from focusing on the consumer market can make it easy for investors to Forget 3D, as well as an impressive list of industrial customers, including Xerox, Motorola (NYSE:MSI)
Northrop Grumman (NYSE:NOC)
Johnson Control (JSI)
General Motors (NYSE:GM), and Ford.
3D systems seem to be able to get into the consumer market first with affordable desktop printers.
The revenue growth in printer materials and design software may dwarf the revenue from printer sales, following the classic 'Blade' model pioneered by Gillette.
HP, once proud, stood out in its consumer market.
If the 3D system successfully puts its printer in the hands of the public, the shareholders will be very, very happy.
Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours.
This article was written by myself and expressed my views.
I received no compensation (
In addition to Seeking Alpha).
I have no business relationship with any stock company mentioned in this article.