Critical Comparison: Stratasys (NASDAQ:SSYS) versus Tennant (NYSE:TNC)

Stratasys (NASDAQ:SSYSGet Free Report) and Tennant (NYSE:TNCGet Free Report) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Valuation & Earnings

This table compares Stratasys and Tennant”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stratasys $547.27 million 1.27 -$104.29 million ($1.34) -6.01
Tennant $1.20 billion 0.95 $43.80 million $1.02 65.63

Tennant has higher revenue and earnings than Stratasys. Stratasys is trading at a lower price-to-earnings ratio than Tennant, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Stratasys has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Tennant has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Stratasys and Tennant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stratasys -21.05% -1.77% -1.38%
Tennant 1.50% 13.32% 6.07%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Stratasys and Tennant, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stratasys 1 1 4 0 2.50
Tennant 1 2 1 0 2.00

Stratasys currently has a consensus target price of $12.33, suggesting a potential upside of 53.02%. Tennant has a consensus target price of $91.00, suggesting a potential upside of 35.94%. Given Stratasys’ stronger consensus rating and higher probable upside, analysts plainly believe Stratasys is more favorable than Tennant.

Insider and Institutional Ownership

75.8% of Stratasys shares are held by institutional investors. Comparatively, 93.3% of Tennant shares are held by institutional investors. 4.3% of Stratasys shares are held by insiders. Comparatively, 3.5% of Tennant shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Tennant beats Stratasys on 8 of the 14 factors compared between the two stocks.

About Stratasys

(Get Free Report)

Stratasys Ltd. provides connected polymer-based 3D printing solutions. It offers range of 3D printing systems, which includes polyjet printer, Fused Deposition Modeling (FDM) printers, stereolithography printing systems, origin P3 printers, and selective absorption fusion printer for additive manufacturing, and tooling and rapid prototyping for various vertical markets, such as automotive, aerospace, consumer products and healthcare. The company provides consumable materials, including 3D printing materials comprising FDM, polyjet, and stereolithography materials for manufacturing applications, such as jigs and fixtures, investment casting, and injection mold or composite tooling applications; and other material. In addition, it offers software and services, which includes cloud, desktop and mobile technologies comprising GrabCAD, an additive manufacturing platform to manage production-scale operations; and GrabCAD Print, job programming software enables the unique features of 3D printing technologies, such as creating lightweight, structurally sound infills for FDM, and multi-material and color and material management for polyjet. The company also provides GrabCAD Shop including scheduling, remote monitoring, and analytics; GrabCAD Connect provides two-way SDK integration for third-party software applications; and GrabCAD Community, an online community of professional engineers, designers, manufacturers and students who share their practices through tutorials, discussion forums, design/print challenges, and 3D content. Further, it offers GrabCAD Shop, which simplifies 3D printing shop workflow; GrabCAD Streamline Software Development Kit (SDK) to support enterprise goals such as system connectivity, compliance, and workflow automation; and Grab CAD Software Partner program for independent software vendors. The company sells its products through a network of resellers and independent sales agents worldwide. Stratasys Ltd. is headquartered in Eden Prairie, Minnesota.

About Tennant

(Get Free Report)

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

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