Rapid7 (NASDAQ:RPD) and 3D Systems (NYSE:DDD) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Insider and Institutional Ownership
91.7% of Rapid7 shares are owned by institutional investors. Comparatively, 69.7% of 3D Systems shares are owned by institutional investors. 4.6% of Rapid7 shares are owned by insiders. Comparatively, 3.4% of 3D Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Rapid7 has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, 3D Systems has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.
Profitability
This table compares Rapid7 and 3D Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Rapid7 | -18.70% | -55.85% | -7.27% |
| 3D Systems | -10.53% | -8.77% | -5.43% |
Earnings and Valuation
This table compares Rapid7 and 3D Systems' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Rapid7 | $326.95 million | 8.25 | $-53,850,000.00 | ($0.74) | -72.18 |
| 3D Systems | $629.09 million | 1.23 | $-69,880,000.00 | ($0.39) | -16.72 |
Rapid7 has higher earnings, but lower revenue than 3D Systems. Rapid7 is trading at a lower price-to-earnings ratio than 3D Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Rapid7 and 3D Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Rapid7 | 0 | 1 | 11 | 1 | 3.00 |
| 3D Systems | 3 | 3 | 1 | 0 | 1.71 |
Rapid7 presently has a consensus price target of $61.3077, suggesting a potential upside of 14.79%. 3D Systems has a consensus price target of $8.3333, suggesting a potential upside of 27.81%. Given 3D Systems' higher possible upside, analysts plainly believe 3D Systems is more favorable than Rapid7.
Summary
3D Systems beats Rapid7 on 8 of the 15 factors compared between the two stocks.
