Critical Analysis: Xometry (NASDAQ:XMTR) and Euro Tech (NASDAQ:CLWT)

Euro Tech (NASDAQ:CLWT) and Xometry (NASDAQ:XMTR) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

2.9% of Euro Tech shares are held by institutional investors. Comparatively, 97.3% of Xometry shares are held by institutional investors. 79.0% of Euro Tech shares are held by company insiders. Comparatively, 9.1% of Xometry shares are held by company 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.

Analyst Recommendations

This is a summary of recent ratings for Euro Tech and Xometry, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euro Tech	1	0	0	0	1.00
Xometry	1	4	6	1	2.58

Xometry has a consensus price target of $102.78, indicating a potential upside of 22.95%. Given Xometry’s stronger consensus rating and higher probable upside, analysts plainly believe Xometry is more favorable than Euro Tech.

Valuation and Earnings

This table compares Euro Tech and Xometry”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Euro Tech	$13.27 million	0.90	$160,000.00	N/A	N/A
Xometry	$686.63 million	6.31	-$61.74 million	($0.60)	-139.32

Euro Tech has higher earnings, but lower revenue than Xometry.

Profitability

This table compares Euro Tech and Xometry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euro Tech	N/A	N/A	N/A
Xometry	-3.82%	-2.88%	-1.29%

Risk and Volatility

Euro Tech has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Xometry has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Summary

Xometry beats Euro Tech on 8 of the 13 factors compared between the two stocks.

About Euro Tech

Euro Tech Holdings Company Limited primarily distributes water treatment equipment, laboratory instruments, analyzers, test kits and related supplies, and power generation equipment to commercial customers, and governmental agencies in Hong Kong and the People's Republic of China. The company operates in two segments, Trading and Manufacturing, and Engineering. It sells analytical instruments, such as spectrophotometers, colorimeters, chromatographs, mass spectrometers, flow injector analyzers, automated sample preparation workstations, and atomic spectrometers; environmental monitoring instruments comprising air and water quality monitoring instruments; sample pre-treatment equipment; and general-purpose laboratory instruments consisting of water quality monitoring and analysis equipment. The company also distributes general testing and measuring equipment comprising multi-channel digital and analogue recorders, signal amplifiers, and calibration equipment for energy conservation, renewable energy equipment, power quality analyzers, and continuous emissions monitoring systems; and air pollution control systems to power plants, railway and aero-space industries, utilities, educational institutions, and telecommunications companies. In addition, it offers process control systems, including sensors, temperature and pressure gauges, power and energy consumption meters, flow meters, valves, temperature and pressure transmitters and control devices, and temperature and pressure calibrators, as well as moisture, power, energy, and harmonic analyzers; systems engineering services; and maintenance, installation assistance, and calibration services. Further, the company distributes programmable logic controllers, telemetry units, and supervisory control and data acquisition systems and software. Euro Tech Holdings Company Limited was founded in 1971 and is headquartered in Hong Kong, Hong Kong.

About Xometry

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. It provides computer numerical control manufacturing, sheet metal forming, and sheet cutting; 3D printing, including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion, and lubricant sublayer photo-curing; and die casting, stamping, injection molding, urethane casting, tube cutting, and tube bending, as well as finishing services, rapid prototyping, and high-volume production services. It serves aerospace, healthcare, robotics, industrial, defense, energy, automotive, government, education, and consumer goods industries. The company was formerly known as NextLine Manufacturing Corp. and changed its name to Xometry, Inc. in June 2015. Xometry, Inc. was incorporated in 2013 and is headquartered in North Bethesda, Maryland.