3D Systems (NASDAQ: CYOU) and Changyou.Com (NASDAQ:CYOU) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider and Institutional Ownership

66.1% of 3D Systems shares are held by institutional investors. Comparatively, 30.3% of Changyou.Com shares are held by institutional investors. 5.0% of 3D Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for 3D Systems and Changyou.Com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3D Systems 6 7 1 0 1.64
Changyou.Com 1 2 0 0 1.67

3D Systems currently has a consensus target price of $12.81, indicating a potential downside of 32.73%. Changyou.Com has a consensus target price of $33.43, indicating a potential upside of 142.97%. Given Changyou.Com’s stronger consensus rating and higher probable upside, analysts plainly believe Changyou.Com is more favorable than 3D Systems.

Profitability

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

Net Margins Return on Equity Return on Assets
3D Systems -11.54% -9.22% -6.36%
Changyou.Com 8.28% 3.92% 2.51%

Volatility and Risk

3D Systems has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Changyou.Com has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Earnings & Valuation

This table compares 3D Systems and Changyou.Com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3D Systems $646.07 million 3.36 -$66.19 million ($0.57) -33.40
Changyou.Com $580.26 million 1.25 $108.83 million $2.04 6.75

Changyou.Com has lower revenue, but higher earnings than 3D Systems. 3D Systems is trading at a lower price-to-earnings ratio than Changyou.Com, indicating that it is currently the more affordable of the two stocks.

Summary

Changyou.Com beats 3D Systems on 8 of the 14 factors compared between the two stocks.

About 3D Systems

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 proprietary software and drivers that provide part review, part preparation, part placement, 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. The company was founded in 1986 and is headquartered in Rock Hill, South Carolina.

About Changyou.Com

Changyou.com Limited develops and operates online games in the People's Republic of China. The company operates through Online Game, Platform Channel, and Others segments. It develops, operates, and licenses online games, including interactive online games that are accessed and played simultaneously by various game players through personal computers; and mobile games played on mobile devices. The company also operates 17173.com Website, an information portal that provides news, electronic forums, online videos, and other information services on online games to game players; and offers various software applications for PCs and mobile devices, as well as purchases pre-film cinema advertising slots from movie theater operators for advertisers. As of December 31, 2017, it had approximately 5.5 million total average monthly active accounts; and 2.0 million total active paying accounts. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

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