Analyzing Xometry (NASDAQ:XMTR) and QXO (NYSE:QXO)

QXO (NYSE:QXO) and Xometry (NASDAQ:XMTR) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$9.90 billion	1.29	-$279.40 million	($0.90)	-13.64
Xometry	$807.53 million	5.53	-$61.74 million	($0.60)	-143.52

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QXO	-5.17%	2.41%	1.20%
Xometry	-3.82%	-2.88%	-1.29%

Volatility and Risk

QXO has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500. Comparatively, Xometry has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

58.7% of QXO shares are held by institutional investors. Comparatively, 97.3% of Xometry shares are held by institutional investors. 41.0% of QXO shares are held by insiders. Comparatively, 9.1% of Xometry shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for QXO and Xometry, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	1	1	13	2	2.94
Xometry	1	4	6	1	2.58

QXO presently has a consensus target price of $28.00, indicating a potential upside of 128.11%. Xometry has a consensus target price of $108.33, indicating a potential upside of 25.81%. Given QXO’s stronger consensus rating and higher possible upside, analysts clearly believe QXO is more favorable than Xometry.

Summary

QXO beats Xometry on 10 of the 15 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

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.