Analyzing CounterPath (NASDAQ:CPAH) and 3D Systems (NASDAQ:DDD)

CounterPath (NASDAQ:CPAH) and 3D Systems (NYSE:DDD) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Risk & Volatility

CounterPath has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, 3D Systems has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Earnings and Valuation

This table compares CounterPath and 3D Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CounterPath $10.77 million 1.28 -$5.01 million N/A N/A
3D Systems $629.09 million 1.42 -$69.88 million ($0.39) -19.28

CounterPath has higher earnings, but lower revenue than 3D Systems.

Analyst Ratings

This is a summary of current ratings and price targets for CounterPath and 3D Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CounterPath 0 0 0 0 N/A
3D Systems 4 1 2 0 1.71

3D Systems has a consensus target price of $9.00, suggesting a potential upside of 19.68%. Given 3D Systems’ higher probable upside, analysts clearly believe 3D Systems is more favorable than CounterPath.

Institutional and Insider Ownership

1.4% of CounterPath shares are owned by institutional investors. Comparatively, 69.4% of 3D Systems shares are owned by institutional investors. 54.0% of CounterPath shares are owned by insiders. Comparatively, 3.3% of 3D Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares CounterPath and 3D Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CounterPath -26.37% -119.30% -24.10%
3D Systems -11.11% -9.91% -6.07%

Summary

3D Systems beats CounterPath on 9 of the 12 factors compared between the two stocks.

CounterPath Company Profile

CounterPath Corporation designs, develops, and sells software and services that enable enterprises and telecommunication service providers to deliver unified communications services over Internet protocol based networks in North America and internationally. Its products include Bria softphone suite, which enables consumers and business users to make voice over Internet protocol (VoIP) audio and video calls, send instant messages, manage their presence, share their screen, and collaborate with other users using desktop computers and laptops, smartphones, and tablets; and X-Lite, a standards-based VoIP softphone application that runs on desktop computers. The company also offers software development kits that deliver voice, video, and messaging capabilities for desktop, tablet, and mobile devices; Stretto Platform, a carrier-grade software platform for enterprises and service providers; Bria X, which delivers centralized provisioning, messaging, and screen sharing from the cloud; and Cloud Solutions for enterprises, operators, and telecommunication channel partners to leverage the Stretto Platform to procure, distribute, provide, and manage Bria Stretto clients from the cloud, as well as to offer hosted messaging and collaboration solutions. In addition, it provides subscription, support, and maintenance services; and professional and other services, such as product configuration and customization, implementation, engineering, and training. The company sells its products and services through its own and third-party online stores; and directly using its in-house sales team, as well as through its channel partners. It serves small, medium, and large sized businesses; telecommunications service providers and Internet telephony service providers; original equipment manufacturers, value added distributors, and value added resellers serving the telecommunication market; and end users. CounterPath Corporation was founded in 2002 and is headquartered in Vancouver, Canada.

3D Systems Company Profile

3D Systems Corporation, through its subsidiaries, provides three-dimensional (3D) printing products and services worldwide. The company offers 3D printers, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, and color jet printers that transform data input generated by 3D design software, CAD software, or other 3D design tools into printed parts under the Accura, DuraForm, LaserForm, CastForm, and VisiJet brand names. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental, and Class IV bio-compatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as products for product design, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection. Further, it offers 3D Sprint and 3DXpert, a proprietary software to prepare and optimize CAD data and manage the additive manufacturing processes, which provides automated support building and placement, build platform management, and print queue management; and 3D virtual reality simulators and simulator modules for medical applications, as well as digitizing scanners for medical and mechanical applications. Additionally, the company provides warranty, maintenance, and training services; on-demand manufacturing solutions; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable good, government, defense, technology, jewelry, electronic, education, consumer good, energy, and other industries through direct sales force, as well as partner channels and distributors. 3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill, South Carolina.

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