Head-To-Head Comparison: Riskified (NYSE:RSKD) and Materialise (NASDAQ:MTLS)

Riskified (NYSE:RSKD) and Materialise (NASDAQ:MTLS) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Riskified and Materialise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riskified	1	3	3	0	2.29
Materialise	0	2	1	0	2.33

Riskified presently has a consensus target price of $6.00, suggesting a potential upside of 18.93%. Materialise has a consensus target price of $10.00, suggesting a potential upside of 52.79%. Given Materialise’s stronger consensus rating and higher possible upside, analysts plainly believe Materialise is more favorable than Riskified.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riskified	$344.64 million	2.17	-$27.57 million	($0.11)	-45.86
Materialise	$302.73 million	1.28	$8.73 million	$0.20	32.72

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

Institutional & Insider Ownership

59.0% of Riskified shares are held by institutional investors. Comparatively, 19.3% of Materialise shares are held by institutional investors. 17.4% of Riskified shares are held by insiders. Comparatively, 1.2% of Materialise shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Riskified has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Materialise has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Profitability

This table compares Riskified and Materialise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riskified	-5.17%	-3.91%	-2.89%
Materialise	3.77%	4.05%	2.47%

Summary

Materialise beats Riskified on 8 of the 14 factors compared between the two stocks.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.

About Materialise

Materialise NV provides additive manufacturing and medical software, and 3D printing services in the Americas, Europe and Africa, and the Asia-Pacific. The company operates through three segments: Materialise Software, Materialise Medical, and Materialise Manufacturing. The Materialise Software segment offers software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design/computer-aided manufacturing packages and 3D scanners. This segment serves 3D printing machine manufacturers; production companies and contract manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third party distributors. The Materialise Medical segment provides medical software that allows medical-image based analysis, planning, and engineering, as well as patient-specific design and printing of surgical devices and implants. It serves medical device companies, hospitals, universities, research institutes, and industrial companies through its direct sales force, Website, and picture archiving and communication system. The Materialise Manufacturing segment provides 3D printing services, design and engineering services, and rapid prototyping and additive manufacturing of production parts to industrial and commercial customers. The company has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Limacorporate Spa; Mathys AG; Corin Ltd; Smith & Nephew Inc.; Corin Ltd; Medtronic Inc.; and Abbott Laboratories Inc. Materialise NV was incorporated in 1990 and is headquartered in Leuven, Belgium.