Desktop Metal (NYSE:DM – Get Rating) and Lenovo Group (OTCMKTS:LNVGF – Get Rating) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for Desktop Metal and Lenovo Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Desktop Metal | 0 | 2 | 1 | 0 | 2.33 |
| Lenovo Group | 0 | 0 | 0 | 0 | N/A |
Desktop Metal presently has a consensus target price of $2.78, indicating a potential upside of 44.53%. Given Desktop Metal’s higher possible upside, equities research analysts clearly believe Desktop Metal is more favorable than Lenovo Group.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Desktop Metal | $209.02 million | 2.95 | -$740.34 million | ($2.29) | -0.84 |
| Lenovo Group | N/A | N/A | N/A | $0.09 | 11.87 |
Lenovo Group has lower revenue, but higher earnings than Desktop Metal. Desktop Metal is trading at a lower price-to-earnings ratio than Lenovo Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
51.2% of Desktop Metal shares are held by institutional investors. Comparatively, 23.3% of Lenovo Group shares are held by institutional investors. 13.9% of Desktop Metal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Desktop Metal and Lenovo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Desktop Metal | -349.92% | -24.26% | -17.98% |
| Lenovo Group | N/A | N/A | N/A |
About Desktop Metal
Desktop Metal, Inc. manufactures and sells additive manufacturing technologies for engineers, designers, and manufacturers in the Americas, Europe, the Middle East, Africa, and the Asia- Pacific. The company offers Production System, an industrial manufacturing solution; Shop System, a mid-volume binder jetting platform; X-series platform for serial production binder jet 3D printed metal, ceramic, or composite parts, balancing speed, and quality; Studio System, an office metal 3D printing system; and Desktop Metal Furnace, which is paired with the Studio System and binder jetting solutions to create turnkey metal additive manufacturing solutions. It also provides Xtreme 8K platform, designed for industrial, high-temperature production of end-use photopolymer parts, and uses high-powered light sources with a water-cooled digital light processing (DLP) chip; Einstein series, designed for dental professionals which offers 3D printing; and Envision One platform, which consists of various models for high-temperature and large part processing, enables high-volume production of end-use photopolymer parts. In addition, the company offers various additional DLP solutions, including the P4K platform and the D4K Pro platform, for a range of production volumes, and industrial and healthcare end-use applications; S-Max and S-Max Pro platforms, which provides digital casting solutions; S-Max Flex platform, a robotic 3D printing solution for digital casting applications; S-Print, an entry-level solution for prototypes and small series production in digital casting applications; and 3D-Bioplotter platform which offers biofabrication solution. Further, it provides binder jetting materials, photopolymer resins, BMD materials, and bioprinting materials. It serves automotive, aerospace, healthcare, consumer products, heavy industry, machine design, research and development, and other industries. Desktop Metal, Inc. was founded in 2015 and is headquartered in Burlington, Massachusetts.
About Lenovo Group
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. It also provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. In addition, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Further, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Additionally, the company is involved in motherboard design and system, full-rack assembly across server, storage, and other products; and provides device-, infrastructure-, and software-as-a-service. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is based in Quarry Bay, Hong Kong.
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