3D Systems (DDD) Grabs Attention as Growth Continues (SSYS) (HPQ) (R)
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How big is 3-D printing technology right now? Surprisingly big...at least, the companies that represent the segment are.
According to market data as of Friday, March 8, 2013, 3-D printer maker 3D Systems (NYSE: DDD) was trading with a market cap of $3.10 billion. Peer Stratasys (Nasdaq: SSYS) is slightly better at $2.68 billion.
Venerable moving truck leasing outfit Ryder Systems (NYSE: R), by comparison, is trading with a market cap of $3.01 billion.
Pointed out by Forbes over the weekend, investors generally put a lot of weight into the size of a company's market cap. Though a stock trading for $20 might seem twice as large as one going for $10, that is generally not the case. (Look at Google (Nasdaq: GOOG) and Apple (Nasdaq: AAPL) as an example.) Market cap gives a way for investors to compare stocks on an "apples-to-apples" basis, whether it be segment peers or other stocks in the market.
The amazing part is that 3D Systems is down slightly on the year, though the stock is up more than double from the same period last year.
One other thing is overall growth. 3D Systems grew earnings by an average of 78 percent over the last five years and growth is expected to be steady at 25 percent for the next five. Though its current P/E ratio is thick at 62 times, forward P/E slims down to 27 times. Growth is even more impressive given that 3D Systems has been in the game for over 25 years.
Stratasys is going for a P/E of just over 148 times right now and 27.7 times next year's earnings.
3D Systems growth trajectory might make it a keen acquisition target as well. Think about Hewlett-Packard (NYSE: HPQ) or Lenovo expanding its printing lineup with something like a series of 3-D printers. H-P in particular was largely a printer company up until the early- to mid-2000s when it started offering complete PC systems.
Into the open Monday, 3D Systems is indicated higher while Stratasys is flat.
According to market data as of Friday, March 8, 2013, 3-D printer maker 3D Systems (NYSE: DDD) was trading with a market cap of $3.10 billion. Peer Stratasys (Nasdaq: SSYS) is slightly better at $2.68 billion.
Venerable moving truck leasing outfit Ryder Systems (NYSE: R), by comparison, is trading with a market cap of $3.01 billion.
Pointed out by Forbes over the weekend, investors generally put a lot of weight into the size of a company's market cap. Though a stock trading for $20 might seem twice as large as one going for $10, that is generally not the case. (Look at Google (Nasdaq: GOOG) and Apple (Nasdaq: AAPL) as an example.) Market cap gives a way for investors to compare stocks on an "apples-to-apples" basis, whether it be segment peers or other stocks in the market.
The amazing part is that 3D Systems is down slightly on the year, though the stock is up more than double from the same period last year.
One other thing is overall growth. 3D Systems grew earnings by an average of 78 percent over the last five years and growth is expected to be steady at 25 percent for the next five. Though its current P/E ratio is thick at 62 times, forward P/E slims down to 27 times. Growth is even more impressive given that 3D Systems has been in the game for over 25 years.
Stratasys is going for a P/E of just over 148 times right now and 27.7 times next year's earnings.
3D Systems growth trajectory might make it a keen acquisition target as well. Think about Hewlett-Packard (NYSE: HPQ) or Lenovo expanding its printing lineup with something like a series of 3-D printers. H-P in particular was largely a printer company up until the early- to mid-2000s when it started offering complete PC systems.
Into the open Monday, 3D Systems is indicated higher while Stratasys is flat.
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