Research Solutions (NASDAQ:RSSS) and Stratasys (NASDAQ:SSYS) Head-To-Head Analysis

Stratasys (NASDAQ:SSYS) and Research Solutions (NASDAQ:RSSS) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings for Stratasys and Research Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratasys	0	0	3	0	3.00
Research Solutions	0	0	0	0	0.00

Stratasys currently has a consensus price target of $14.33, indicating a potential upside of 46.11%. Given Stratasys’ stronger consensus rating and higher probable upside, equities analysts clearly believe Stratasys is more favorable than Research Solutions.

Institutional & Insider Ownership

75.8% of Stratasys shares are owned by institutional investors. Comparatively, 33.6% of Research Solutions shares are owned by institutional investors. 4.3% of Stratasys shares are owned by insiders. Comparatively, 12.9% of Research Solutions 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.

Risk & Volatility

Stratasys has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Research Solutions has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Earnings and Valuation

This table compares Stratasys and Research Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratasys	$572.46 million	1.46	-$120.28 million	($1.34)	-7.32
Research Solutions	$44.62 million	2.39	-$3.79 million	($0.14)	-23.50

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

Profitability

This table compares Stratasys and Research Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stratasys	-17.42%	-1.06%	-0.82%
Research Solutions	-8.03%	-5.80%	-1.59%

Summary

Stratasys beats Research Solutions on 9 of the 14 factors compared between the two stocks.

About Stratasys

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 Research Solutions

Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally. It provides Discover platform that facilitates search discovery across virtually all scientific, technical, and medical (STM) articles available, including free basic search solutions and advanced search tools, which include the Resolute.ai and scite.ai products, a tools that allows for searching and identifying relevant research and find insights in other datasets adjacent to STM content, such as clinical trial, patent, life science and medtech regulatory information, competitor and technology landscape insights in addition to searching the customer’s internal datasets. The company also offers Article Galaxy, a solution that allows research organizations to load their entitlements, consisting of subscriptions, discount or token packages, and their existing library of articles. In addition, it provides Manage platform, a references solution that allows users to access the article inside the platform including setting up personal folders or team folders and allows researchers to markup and take notes on the articles in a supported browser on a desktop or tablet. Further, the company’s platform facilitates the sale of published STM content sold as individual articles. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.