Head-To-Head Comparison: 3D Systems (NYSE:DDD) & Lincoln Electric (NASDAQ:LECO)

3D Systems (NYSE:DDD) and Lincoln Electric (NASDAQ:LECO) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Profitability

This table compares 3D Systems and Lincoln Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
3D Systems	-14.15%	-19.56%	-8.92%
Lincoln Electric	12.35%	39.23%	15.25%

Valuation & Earnings

This table compares 3D Systems and Lincoln Electric”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
3D Systems	$386.90 million	1.25	$29.88 million	($0.41)	-7.07
Lincoln Electric	$4.23 billion	3.34	$520.53 million	$10.01	25.89

Lincoln Electric has higher revenue and earnings than 3D Systems. 3D Systems is trading at a lower price-to-earnings ratio than Lincoln Electric, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

3D Systems has a beta of 2.77, meaning that its stock price is 177% more volatile than the S&P 500. Comparatively, Lincoln Electric has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Institutional & Insider Ownership

64.5% of 3D Systems shares are owned by institutional investors. Comparatively, 79.6% of Lincoln Electric shares are owned by institutional investors. 4.0% of 3D Systems shares are owned by insiders. Comparatively, 1.7% of Lincoln Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for 3D Systems and Lincoln Electric, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
3D Systems	1	1	3	0	2.40
Lincoln Electric	0	4	5	1	2.70

3D Systems currently has a consensus target price of $5.50, indicating a potential upside of 89.66%. Lincoln Electric has a consensus target price of $306.78, indicating a potential upside of 18.36%. Given 3D Systems’ higher possible upside, analysts clearly believe 3D Systems is more favorable than Lincoln Electric.

Summary

Lincoln Electric beats 3D Systems on 12 of the 15 factors compared between the two stocks.

About 3D Systems

3D Systems Corporation provides 3D printing and digital manufacturing solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company offers 3D printers technologies, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, color jet printing, polymer extrusion, and extrusion and SLA based bioprinting that transform digital data input generated by 3D design software, computer aided design (CAD) software, or other 3D design tools into printed parts. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental materials, and biocompatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as solutions for product design, simulation, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection and manufacturing workflows under the Geomagic brand. Further, it offers 3D Sprint and 3DXpert, a proprietary software to prepare and optimize CAD data and manage the additive manufacturing processes, which provides automated support building and placement, build platform management, print simulation, and print queue management; and Bioprint Pro, a software solution that allows researchers to design and bioprint repeatable experiments. Additionally, the company provides maintenance and training services; manufacturing services; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable goods, government, defense, technology, jewelry, electronic, education, consumer goods, energy, biotechnology, and other industries through direct sales force, channel partners, and appointed distributors. 3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill, South Carolina.

About Lincoln Electric

Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. It offers brazing and soldering filler metals, arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, and specialty gas regulators, and education solutions, as well as a portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing, as well as involved in brazing and soldering alloys, and in the retail business in the United States. In addition, the company manufactures copper and aluminum headers, distributor assemblies, and manifolds for the heating, ventilation, and air conditioning sector in the United States and Mexico; provides specialty welding consumables, wear plates and maintenance and repair services for alloy and wear-resistant products used in mining, steel, agricultural, and industrial mill applications; and designs and manufactures robotic assembly and arc welding systems that automate the tacking and welding of steel beams. Further, the company serves general fabrication, oil and gas, power generation, process, automotive and transportation, and construction and infrastructure industries, as well as heavy fabrication, ship building, and maintenance and repair markets. It sells its products directly to users of welding products, as well as through industrial distributors, retailers, and agents. The company was founded in 1895 and is headquartered in Cleveland, Ohio.