Contrasting 3D Systems (NYSE:DDD) & Rosetta Stone (NYSE:RST)


Rosetta Stone (NYSE:RST) and 3D Systems (NYSE:DDD) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Rosetta Stone and 3D Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rosetta Stone -8.90% N/A -8.64%
3D Systems -7.26% -6.26% -4.17%

Analyst Recommendations

This is a summary of recent recommendations for Rosetta Stone and 3D Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosetta Stone 0 0 3 0 3.00
3D Systems 2 6 1 0 1.89

Rosetta Stone currently has a consensus target price of $27.67, suggesting a potential upside of 12.47%. 3D Systems has a consensus target price of $11.69, suggesting a potential upside of 37.66%. Given 3D Systems’ higher probable upside, analysts clearly believe 3D Systems is more favorable than Rosetta Stone.

Institutional and Insider Ownership

82.7% of Rosetta Stone shares are held by institutional investors. Comparatively, 70.4% of 3D Systems shares are held by institutional investors. 13.5% of Rosetta Stone shares are held by insiders. Comparatively, 3.3% of 3D Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Rosetta Stone has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, 3D Systems has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Earnings & Valuation

This table compares Rosetta Stone and 3D Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rosetta Stone $173.63 million 3.37 -$21.47 million ($0.95) -25.89
3D Systems $687.66 million 1.44 -$45.51 million ($0.37) -22.95

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

Rosetta Stone Company Profile

Rosetta Stone Inc., together with its subsidiaries, provides technology-based learning products in the United States and internationally. It operates through three segments: Literacy, E&E Language, and Consumer Language. The company develops, markets, and supports a suite of language-learning, literacy, and brain fitness solutions consisting of Web-based software subscriptions, perpetual software products, online and professional services, audio practice products, and mobile applications. It also provides administrative tools for performance monitoring, and to measure and track learner progress; and custom solutions, including curriculum development, global collaboration programs, group and live tutoring, and language courses for mission-critical government programs. The company offers its courses in approximately 30 languages under the Rosetta Stone, The Blue Stone Logo, Lexia, Lexia PowerUP Literacy, TruAccent, and Catalyst brand names. It sells its products and services through call centers, Websites, app-stores, third party e-commerce Websites, select retail resellers, consignment distributors, daily deal partners, and third-party resellers, as well as directly to individuals, educational institutions, corporations, and government agencies. Rosetta Stone Inc. was founded in 1992 and is headquartered in Arlington, Virginia.

3D Systems Company Profile

3D Systems Corporation, through its subsidiaries, provides three-dimensional (3D) printing products and services worldwide. The company offers 3D printers, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, and color jet printers that transform data input generated by 3D design software, CAD software, or other 3D design tools into printed parts under the Accura, DuraForm, LaserForm, CastForm, and VisiJet brand names. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental, and Class IV bio-compatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as products for product design, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection. 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, and print queue management; and 3D virtual reality simulators and simulator modules for medical applications, as well as digitizing scanners for medical and mechanical applications. Additionally, the company provides warranty, maintenance, and training services; on-demand manufacturing solutions; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable good, government, defense, technology, jewelry, electronic, education, consumer good, energy, and other industries through direct sales force, as well as partner channels and distributors. 3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill, South Carolina.



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