Materialise (NASDAQ:MTLS – Get Free Report) and 2U (NASDAQ:TWOU – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Volatility and Risk
Materialise has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, 2U has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.
Earnings and Valuation
This table compares Materialise and 2U’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Materialise | $257.86 million | 1.23 | $7.28 million | $0.12 | 44.83 |
| 2U | $905.83 million | 0.00 | -$317.61 million | ($117.42) | 0.00 |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Materialise and 2U, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Materialise | 0 | 0 | 1 | 0 | 3.00 |
| 2U | 0 | 6 | 0 | 0 | 2.00 |
Materialise presently has a consensus target price of $9.50, indicating a potential upside of 76.58%. 2U has a consensus target price of $54.00, indicating a potential upside of 11,150.00%. Given 2U’s higher possible upside, analysts plainly believe 2U is more favorable than Materialise.
Institutional and Insider Ownership
19.3% of Materialise shares are owned by institutional investors. Comparatively, 80.5% of 2U shares are owned by institutional investors. 1.2% of Materialise shares are owned by company insiders. Comparatively, 3.7% of 2U shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Materialise and 2U’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Materialise | 4.21% | 6.29% | 3.80% |
| 2U | -35.13% | -10.90% | -1.71% |
Summary
Materialise beats 2U on 10 of the 14 factors compared between the two stocks.
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.
About 2U
2U, Inc. operates as an online education platform company in the United States and internationally. The company operates through two segments, Degree Program and Alternative Credential. The Degree Program segment provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs. This segment targets students seeking an undergraduate or graduate degree. The Alternative Credential segment offers online open courses, executive education programs, technical, skills-based boot camps, and micro-credential programs through nonprofit colleges and universities, and other organizations. This segment targets students seeking to reskill or upskill for career or personal development through shorter duration and lower-priced offerings. It provides a platform that provides technology and technology-enabled services; and edX.org, a marketplace that allows to access various catalog of online offerings, which include free offerings and graduate degrees. The company was formerly known as 2Tor Inc. and changed its name to 2U, Inc. in October 2012. 2U, Inc. was incorporated in 2008 and is headquartered in Lanham, Maryland.
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