Materialise (NASDAQ:MTLS) vs. Kingsoft Cloud (NASDAQ:KC) Financial Review

Kingsoft Cloud (NASDAQ:KC) and Materialise (NASDAQ:MTLS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Insider & Institutional Ownership

13.4% of Kingsoft Cloud shares are owned by institutional investors. Comparatively, 19.3% of Materialise shares are owned by institutional investors. 14.2% of Kingsoft Cloud shares are owned by insiders. Comparatively, 1.2% of Materialise shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Kingsoft Cloud and Materialise’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft Cloud	$992.61 million	0.66	-$306.53 million	($1.13)	-2.27
Materialise	$253.88 million	1.37	$7.28 million	$0.12	49.17

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

Analyst Ratings

This is a breakdown of current ratings for Kingsoft Cloud and Materialise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft Cloud	0	1	4	0	2.80
Materialise	0	0	1	0	3.00

Kingsoft Cloud presently has a consensus price target of $4.55, suggesting a potential upside of 77.04%. Materialise has a consensus price target of $9.50, suggesting a potential upside of 61.02%. Given Kingsoft Cloud’s higher probable upside, equities analysts clearly believe Kingsoft Cloud is more favorable than Materialise.

Risk and Volatility

Kingsoft Cloud has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Materialise has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares Kingsoft Cloud and Materialise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingsoft Cloud	-27.62%	-25.61%	-12.55%
Materialise	2.55%	4.51%	2.69%

Summary

Materialise beats Kingsoft Cloud on 9 of the 14 factors compared between the two stocks.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

About Materialise

Materialise NV provides additive manufacturing and medical software, and 3D printing services in the Americas, Europe and Africa, and the Asia-Pacific. The company operates through three segments: Materialise Software, Materialise Medical, and Materialise Manufacturing. The Materialise Software segment offers software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design/computer-aided manufacturing packages and 3D scanners. This segment serves 3D printing machine manufacturers; production companies and contract manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third party distributors. The Materialise Medical segment provides medical software that allows medical-image based analysis, planning, and engineering, as well as patient-specific design and printing of surgical devices and implants. It serves medical device companies, hospitals, universities, research institutes, and industrial companies through its direct sales force, Website, and picture archiving and communication system. The Materialise Manufacturing segment provides 3D printing services, design and engineering services, and rapid prototyping and additive manufacturing of production parts to industrial and commercial customers. The company has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Limacorporate Spa; Mathys AG; Corin Ltd; Smith & Nephew Inc.; Corin Ltd; Medtronic Inc.; and Abbott Laboratories Inc. Materialise NV was incorporated in 1990 and is headquartered in Leuven, Belgium.