Critical Review: 3D Systems (NYSE:DDD) and Cornerstone OnDemand (NYSE:CSOD)


3D Systems (NYSE:DDD) and Cornerstone OnDemand (NASDAQ:CSOD) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional Ownership

71.7% of 3D Systems shares are owned by institutional investors. Comparatively, 90.8% of Cornerstone OnDemand shares are owned by institutional investors. 3.3% of 3D Systems shares are owned by company insiders. Comparatively, 9.4% of Cornerstone OnDemand shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares 3D Systems and Cornerstone OnDemand’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3D Systems $687.66 million 1.18 -$45.51 million ($0.37) -18.59
Cornerstone OnDemand $537.89 million 5.79 -$33.84 million ($0.23) -223.22

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

Profitability

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

Net Margins Return on Equity Return on Assets
3D Systems -9.78% -8.98% -5.84%
Cornerstone OnDemand -3.23% -11.18% -1.00%

Analyst Recommendations

This is a summary of current ratings and price targets for 3D Systems and Cornerstone OnDemand, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3D Systems 2 4 1 0 1.86
Cornerstone OnDemand 1 2 6 1 2.70

3D Systems presently has a consensus target price of $10.42, indicating a potential upside of 51.41%. Cornerstone OnDemand has a consensus target price of $62.63, indicating a potential upside of 21.98%. Given 3D Systems’ higher probable upside, analysts plainly believe 3D Systems is more favorable than Cornerstone OnDemand.

Risk & Volatility

3D Systems has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500. Comparatively, Cornerstone OnDemand has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Cornerstone OnDemand beats 3D Systems on 10 of the 15 factors compared between the two stocks.

About 3D Systems

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.

About Cornerstone OnDemand

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and human capital management software through software-as-a-service model worldwide. Its enterprise human capital management platform comprises four product suites, such as Recruiting Suite that helps organizations to attract, hire, and onboard the right employees; Learning Suite, which provides robust, a modern learning management software to supports compliance, knowledge sharing, and employee-driven development training; Performance Suite that provides tools to manage goal setting, performance reviews, competency assessments, development plans, continuous feedback, compensation management, and succession planning; and HR Administration Suite, which provides an aggregated view of all employee data with workforce planning, self-service management, and compliance reporting capabilities. The company also offers professional services, including application configuration, system integration, business process re-engineering, change management, and training. It serves business services, financial services, healthcare, pharmaceuticals, insurance, manufacturing, retail, and technology industries. Cornerstone OnDemand, Inc. was founded in 1999 and is headquartered in Santa Monica, California.



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