Financial Contrast: SPAR Group (NASDAQ:SGRP) versus Xometry (NASDAQ:XMTR)

Xometry (NASDAQ:XMTR) and SPAR Group (NASDAQ:SGRP) are both small-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Xometry and SPAR Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	2	4	0	2.43
SPAR Group	0	0	0	0	N/A

Xometry presently has a consensus target price of $22.86, indicating a potential upside of 1.68%. Given Xometry’s higher possible upside, equities analysts clearly believe Xometry is more favorable than SPAR Group.

Earnings & Valuation

This table compares Xometry and SPAR Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$502.36 million	2.21	-$67.47 million	($1.09)	-20.62
SPAR Group	$262.75 million	0.21	$3.90 million	$0.53	4.53

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

Insider and Institutional Ownership

97.3% of Xometry shares are owned by institutional investors. Comparatively, 9.6% of SPAR Group shares are owned by institutional investors. 16.8% of Xometry shares are owned by insiders. Comparatively, 59.7% of SPAR Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Xometry has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Xometry and SPAR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xometry	-10.53%	-10.75%	-5.05%
SPAR Group	4.90%	12.27%	5.15%

Summary

SPAR Group beats Xometry on 8 of the 13 factors compared between the two stocks.

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 SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.