Analyzing Xometry (NASDAQ:XMTR) and Regal Rexnord (NYSE:RRX)

Xometry (NASDAQ:XMTR) and Regal Rexnord (NYSE:RRX) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xometry	-8.99%	-5.49%	-2.24%
Regal Rexnord	4.71%	9.60%	4.61%

Risk & Volatility

Xometry has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

97.3% of Xometry shares are owned by institutional investors. Comparatively, 99.7% of Regal Rexnord shares are owned by institutional investors. 9.7% of Xometry shares are owned by company insiders. Comparatively, 0.8% of Regal Rexnord shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$642.78 million	3.27	-$50.40 million	($1.22)	-33.61
Regal Rexnord	$5.93 billion	2.47	$279.50 million	$4.20	52.59

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Xometry and Regal Rexnord, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	2	4	5	0	2.27
Regal Rexnord	0	3	7	0	2.70

Xometry currently has a consensus target price of $62.00, indicating a potential upside of 51.18%. Regal Rexnord has a consensus target price of $227.50, indicating a potential upside of 3.01%. Given Xometry’s higher probable upside, research analysts plainly believe Xometry is more favorable than Regal Rexnord.

Summary

Regal Rexnord beats Xometry on 11 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 Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.