The ExOne Company (NASDAQ: XONE) and Kornit Digital (NASDAQ:KRNT) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitabiliy, earnings, dividends and risk.

Volatility and Risk

The ExOne Company has a beta of 3.28, meaning that its stock price is 228% more volatile than the S&P 500. Comparatively, Kornit Digital has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500.

Earnings & Valuation

This table compares The ExOne Company and Kornit Digital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The ExOne Company $50.24 million 3.59 -$8.85 million ($0.99) -11.29
Kornit Digital $113.96 million 5.66 $6.97 million ($0.01) -1,973.03

Kornit Digital has higher revenue and earnings than The ExOne Company. Kornit Digital is trading at a lower price-to-earnings ratio than The ExOne Company, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for The ExOne Company and Kornit Digital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The ExOne Company 0 2 1 0 2.33
Kornit Digital 0 0 5 0 3.00

The ExOne Company currently has a consensus price target of $14.50, suggesting a potential upside of 29.70%. Kornit Digital has a consensus price target of $21.00, suggesting a potential upside of 6.33%. Given The ExOne Company’s higher probable upside, equities research analysts clearly believe The ExOne Company is more favorable than Kornit Digital.

Profitability

This table compares The ExOne Company and Kornit Digital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The ExOne Company -31.67% -17.71% -14.67%
Kornit Digital -0.60% 5.95% 4.74%

Insider & Institutional Ownership

52.3% of The ExOne Company shares are held by institutional investors. Comparatively, 58.7% of Kornit Digital shares are held by institutional investors. 36.4% of The ExOne Company shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Kornit Digital beats The ExOne Company on 10 of the 13 factors compared between the two stocks.

About The ExOne Company

The ExOne Company is a provider of three dimensional (3D) printing machines and 3D printed and other products, materials and services to industrial customers. The Company’s business primarily consists of manufacturing and selling 3D printing machines and printing products to specification for its customers using its installed base of 3D printing machines. Its machines serve direct and indirect applications. It offers pre-production collaboration and print products for customers through over nine production service centers (PSCs), which are located in the United States, Germany, Italy, Sweden and Japan. It also supplies the associated materials, including consumables and replacement parts, and other services, including training and technical support. It produces a range of machines in order to enable designers and engineers to design and produce industrial prototypes and production parts. The models include Exerial, S-Max/S-Max+, S-Print/M-Print, M-Flex, Innovent and MWT Microwave.

About Kornit Digital

Kornit Digital Ltd. develops, designs and markets digital printing solutions for the global printed textile industry. The Company’s solutions include its digital printing systems, ink and other consumables, associated software and value added services. Its customers include custom decorators, online businesses, brand owners and contract printers. The Company categorizes its Direct to Garment (DTG) systems into two groups: entry level and high throughput. The Company’s entry-level systems consist of its Breeze and Thunder systems. Its high throughput systems consist of its Avalanche family of systems, Storm II and Paradigm II. Allegro is its Roll to Roll (R2R) printing system. Its ink and other consumables consist of NeoPigment PURE ink, binding agent, priming fluid, wiping fluid and flushing fluid. Its pigment-based inks are available in over seven colors and are formulated for use in its systems.

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