L.B. Foster (NASDAQ:FSTR) vs. Stratasys (NASDAQ:SSYS) Financial Analysis

Stratasys (NASDAQ:SSYS – Get Free Report) and L.B. Foster (NASDAQ:FSTR – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares Stratasys and L.B. Foster’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%
L.B. Foster 2.35% 8.83% 4.79%

Analyst Ratings

This is a summary of recent ratings for Stratasys and L.B. Foster, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stratasys 1 1 4 0 2.50
L.B. Foster 0 3 1 0 2.25

Stratasys currently has a consensus target price of $12.33, indicating a potential upside of 88.58%. L.B. Foster has a consensus target price of $32.00, indicating a potential downside of 24.37%. Given Stratasys’ stronger consensus rating and higher probable upside, research analysts plainly believe Stratasys is more favorable than L.B. Foster.

Earnings and Valuation

This table compares Stratasys and L.B. Foster”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stratasys $551.10 million 1.05 -$104.29 million ($1.34) -4.88
L.B. Foster $540.01 million 0.82 $7.55 million $1.29 32.80

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

Insider & Institutional Ownership

75.8% of Stratasys shares are held by institutional investors. Comparatively, 80.6% of L.B. Foster shares are held by institutional investors. 4.3% of Stratasys shares are held by company insiders. Comparatively, 7.6% of L.B. Foster shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Stratasys has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, L.B. Foster has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Summary

L.B. Foster beats Stratasys on 8 of the 14 factors compared between the two stocks.

About Stratasys

(Get Free Report)

Stratasys is a global provider of polymer 3D printing and additive manufacturing solutions. Its offerings include 3D printers, printing materials, software and related services for designing and producing prototypes, tools and end-use parts. The company serves customers across industries such as aerospace, automotive, healthcare, consumer products and education. Its technologies include Fused Deposition Modeling (FDM), PolyJet and stereolithography, supporting a range of applications from product development to manufacturing.

About L.B. Foster

(Get Free Report)

L.B. Foster Company is a global manufacturer, distributor and solutions provider serving the rail, construction and infrastructure markets. Founded in 1902, the company has a long history of supplying products and services for transportation and infrastructure projects. Its rail offerings include trackwork and other rail products, along with engineering, friction-management and condition-monitoring solutions. For infrastructure and construction customers, L.B. Foster supplies products such as precast concrete, steel components and bridge-related systems, as well as coatings and related services.

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