Analyzing Xometry (NASDAQ:XMTR) and Liquidity Services (NASDAQ:LQDT)

Xometry (NASDAQ:XMTRGet Free Report) and Liquidity Services (NASDAQ:LQDTGet Free Report) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Xometry and Liquidity Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xometry -13.68% -15.90% -7.54%
Liquidity Services 6.30% 18.51% 10.37%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Xometry and Liquidity Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xometry 1 2 4 0 2.43
Liquidity Services 0 0 1 0 3.00

Xometry currently has a consensus price target of $22.71, suggesting a potential upside of 93.64%. Liquidity Services has a consensus price target of $27.00, suggesting a potential upside of 36.43%. Given Xometry’s higher probable upside, equities analysts plainly believe Xometry is more favorable than Liquidity Services.

Earnings and Valuation

This table compares Xometry and Liquidity Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xometry $463.41 million 1.17 -$67.47 million ($1.36) -8.62
Liquidity Services $314.46 million 1.92 $20.98 million $0.65 30.45

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

Volatility and Risk

Xometry has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Liquidity Services has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

97.3% of Xometry shares are held by institutional investors. Comparatively, 71.2% of Liquidity Services shares are held by institutional investors. 19.2% of Xometry shares are held by company insiders. Comparatively, 29.8% of Liquidity Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Liquidity Services beats Xometry on 10 of the 14 factors compared between the two stocks.

About Xometry

(Get Free Report)

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 Liquidity Services

(Get Free Report)

Liquidity Services, Inc. provides e-commerce marketplaces, self-directed auction listing tools, and value-added services in the United States and internationally. The company operates through four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination. The company also offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services. In addition, it operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. The company offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment. The company was incorporated in 1999 and is headquartered in Bethesda, Maryland.

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