Head-To-Head Analysis: Xometry (NASDAQ:XMTR) & DNOW (NYSE:DNOW)

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

Profitability

This table compares Xometry and DNOW’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%
DNOW	-4.58%	3.91%	2.25%

Valuation & Earnings

This table compares Xometry and DNOW”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$807.53 million	6.49	-$61.74 million	($0.60)	-168.44
DNOW	$2.82 billion	1.07	-$89.00 million	($1.07)	-15.59

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

Institutional & Insider Ownership

97.3% of Xometry shares are owned by institutional investors. Comparatively, 97.6% of DNOW shares are owned by institutional investors. 9.1% of Xometry shares are owned by company insiders. Comparatively, 1.9% of DNOW shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	4	8	0	2.54
DNOW	0	3	3	1	2.71

Xometry currently has a consensus target price of $113.18, indicating a potential upside of 11.99%. DNOW has a consensus target price of $18.20, indicating a potential upside of 9.08%. Given Xometry’s higher possible upside, analysts plainly believe Xometry is more favorable than DNOW.

Risk and Volatility

Xometry has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, DNOW has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

Xometry beats DNOW on 8 of the 15 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 DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.