Xometry (NASDAQ:XMTR) versus DHI Group (NYSE:DHX) Financial Analysis

Xometry (NASDAQ:XMTR) and DHI Group (NYSE:DHX) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk and Volatility

Xometry has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, DHI Group has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Insider & Institutional Ownership

97.3% of Xometry shares are held by institutional investors. Comparatively, 69.3% of DHI Group shares are held by institutional investors. 16.8% of Xometry shares are held by company insiders. Comparatively, 15.8% of DHI Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xometry	-9.72%	-10.16%	-4.74%
DHI Group	0.95%	7.87%	3.80%

Analyst Ratings

This is a summary of recent ratings for Xometry and DHI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	2	4	0	2.43
DHI Group	0	0	2	0	3.00

Xometry presently has a consensus price target of $27.71, indicating a potential downside of 13.45%. DHI Group has a consensus price target of $5.25, indicating a potential upside of 194.94%. Given DHI Group’s stronger consensus rating and higher probable upside, analysts clearly believe DHI Group is more favorable than Xometry.

Earnings and Valuation

This table compares Xometry and DHI Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$525.13 million	3.02	-$67.47 million	($1.05)	-30.50
DHI Group	$151.88 million	0.57	$3.49 million	$0.04	44.51

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

Summary

DHI Group beats Xometry on 9 of the 14 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 DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.