Contrasting Xometry (NASDAQ:XMTR) and GATX (NYSE:GATX)

Xometry (NASDAQ:XMTR) and GATX (NYSE:GATX) are both mid-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Volatility & Risk

Xometry has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, GATX has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Earnings and Valuation

This table compares Xometry and GATX”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$686.63 million	8.40	-$61.74 million	($0.60)	-185.48
GATX	$1.74 billion	3.73	$333.30 million	$10.77	17.27

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

Institutional and Insider Ownership

97.3% of Xometry shares are held by institutional investors. Comparatively, 93.1% of GATX shares are held by institutional investors. 9.1% of Xometry shares are held by company insiders. Comparatively, 1.9% of GATX shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Xometry and GATX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	4	8	0	2.54
GATX	0	0	4	0	3.00

Xometry presently has a consensus price target of $114.45, suggesting a potential upside of 2.84%. GATX has a consensus price target of $219.33, suggesting a potential upside of 17.89%. Given GATX’s stronger consensus rating and higher possible upside, analysts clearly believe GATX is more favorable than Xometry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xometry	-3.82%	-2.88%	-1.29%
GATX	17.69%	10.62%	2.16%

Summary

GATX 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 GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.