Contrasting Advantage Solutions (NASDAQ:ADV) and Xometry (NASDAQ:XMTR)

Advantage Solutions (NASDAQ:ADVGet Rating) and Xometry (NASDAQ:XMTRGet Rating) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Institutional & Insider Ownership

26.8% of Advantage Solutions shares are owned by institutional investors. Comparatively, 95.8% of Xometry shares are owned by institutional investors. 4.9% of Advantage Solutions shares are owned by company insiders. Comparatively, 30.2% of Xometry shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Advantage Solutions and Xometry, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Solutions 0 3 0 0 2.00
Xometry 0 1 4 0 2.80

Advantage Solutions presently has a consensus target price of $5.67, suggesting a potential upside of 129.42%. Xometry has a consensus target price of $55.33, suggesting a potential upside of 32.38%. Given Advantage Solutions’ higher probable upside, analysts plainly believe Advantage Solutions is more favorable than Xometry.

Profitability

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

Net Margins Return on Equity Return on Assets
Advantage Solutions 1.72% 6.80% 3.03%
Xometry -21.58% -15.52% -9.11%

Earnings & Valuation

This table compares Advantage Solutions and Xometry’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advantage Solutions $3.60 billion 0.22 $54.49 million $0.22 11.23
Xometry $218.34 million 8.54 -$61.38 million ($1.63) -25.64

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

Risk and Volatility

Advantage Solutions has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Xometry has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500.

Summary

Advantage Solutions beats Xometry on 9 of the 14 factors compared between the two stocks.

About Advantage Solutions

(Get Rating)

Advantage Solutions Inc. provides outsourced solutions to consumer goods companies and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; administration; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising, in-store media, and digital commerce. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; and retailer-centric services, such as retail experiential, private label, digital marketing, and digital media and advertising. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. Advantage Solutions Inc. was founded in 1987 and is headquartered in Irvine, California.

About Xometry

(Get Rating)

Xometry, Inc. operates a marketplace that enables buyers to source manufactured parts and assemblies in the United States and internationally. It provides CNC machining, milling, and turning services; sheet, laser, waterjet, and plasma cutting services; and sheet metal forming services. The company also offers 3D printing services, such as carbon digital light synthesis, fused deposition modeling, HP multi jet fusion, PolyJet, selective laser sintering, stereolithography, metal 3D printing service, direct metal laser sintering, and metal binder jetting; and injection molding services, including plastic injection, over, insert, and prototype molding, as well as bridge and production tooling. In addition, it provides other services comprising urethane and die casting, vapor smoothing, finishing, rapid prototyping, high- volume production, and assembly services. The company offers its products under the Allied Machine & Engineering, Brubaker, HTC, OSG, Kyocera, Mitsubishi Materials, SOWA, Viking Drill & Tool, Dauphin, and Sandvik brands. It serves aerospace and defense, automotive, consumer products, product designers, education, electronic and semiconductors, energy, hardware startups, industrial, medical and dental, robotics, and supply chain and purchasing 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 Derwood, Maryland.

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