A Look at 3D Systems Corporation (DDD)’s Quarter

As we look at the other two metrics, which I believe are most important to the sentiment of a stock, you see that 3D Systems is significantly more efficient in terms of margins and is also cheaper compared to revenue. With 3D Systems Corporation (NYSE:DDD), because of its revenue growth, I have no problem paying a price/sales near 10.0, but a near 50% premium for a company that I consider a notch below (Stratasys) is way too expensive. Thus I consider 3D Systems to be a great investment for this mere fact, combined with the data discussed from its earnings report.

Conclusion

In my opinion, 3D Systems Corporation (NYSE:DDD) has the perfect balance of growth and value to create substantial upside. While I do like Stratasys I also think it is too expensive. And although ExOne has a great deal of promise it is still too early to place such a large premium on the stock. Hence 3D Systems becomes the best choice, and because it has underperformed throughout 2013 (currently trading at $37.00) the stock is presenting upside potential.

The article Strong Earnings Validate Upside Potential in 3D originally appeared on Fool.com and is written by Brian Nichols.

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