Analyzing Xometry (NASDAQ:XMTR) & Twin Disc (NASDAQ:TWIN)

Xometry (NASDAQ:XMTR) and Twin Disc (NASDAQ:TWIN) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares Xometry and Twin Disc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xometry	-7.01%	-4.37%	-1.71%
Twin Disc	7.32%	2.77%	1.29%

Valuation and Earnings

This table compares Xometry and Twin Disc”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$686.63 million	6.12	-$61.74 million	($1.02)	-79.44
Twin Disc	$340.74 million	0.85	-$1.89 million	$1.84	10.96

Twin Disc has lower revenue, but higher earnings than Xometry. Xometry is trading at a lower price-to-earnings ratio than Twin Disc, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

97.3% of Xometry shares are held by institutional investors. Comparatively, 65.3% of Twin Disc shares are held by institutional investors. 9.1% of Xometry shares are held by insiders. Comparatively, 22.1% of Twin Disc shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Xometry and Twin Disc, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	4	6	0	2.45
Twin Disc	0	2	0	0	2.00

Xometry currently has a consensus target price of $76.00, indicating a potential downside of 6.21%. Given Xometry’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Xometry is more favorable than Twin Disc.

Risk and Volatility

Xometry has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Twin Disc has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

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.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.