ExOne IPO Hopes to Follow DDD

exone-ipo3D Systems (NYSE: DDD), a provider of three-dimensional printing services, has been one of the fastest-rising stocks on the market, growing 257% in the last year.
Now another three-dimensional printing company will attempt to mimic 3D Systems’ success.

ExOne IPO Announcement 

ExOne, a Pennsylvania-based company that provides 3-D printing machines and products to industrial customers, announced terms for an IPO today. It plans to raise $75 million by offering 5 million shares at a range of $14 to $16 per share. The company booked $19 million in sales over the past 12 months.
3D Systems, meanwhile, generated $90 million in revenue in the third quarter alone, so it’s difficult to really compare the two companies. What is clear is that the market for three-dimensional printing technology is hot – and the ExOne IPO is attempting to ride the hot streak.
3-D printing is a relatively new technology. It allows companies to print three-dimensional replicas of real parts taken directly from digital input. The technology even has uses in the medical world – one woman reportedly received a 3-D printed jawbone recently. Those are the types of capabilities that has investors fascinated with the technology’s growth potential.
ExOne is betting investors will be equally fascinated with its stock. That should give shares a nice first-day push during the ExOne IPO. Over time, however, ExOne will have to prove it can turn a profit the way 3D Systems has.
3D Systems earned $36 million over the last four quarters and has a profit margin of 11%.
ExOne’s IPO is enticing to investors keen on finding the next DDD. But just because the technologies are similar doesn’t mean the stocks will be.
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