Comparing Applied Industrial Technologies (NYSE:AIT) and Xometry (NASDAQ:XMTR)

Applied Industrial Technologies (NYSE:AIT) and Xometry (NASDAQ:XMTR) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Applied Industrial Technologies and Xometry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Industrial Technologies	8.34%	21.64%	12.91%
Xometry	-7.01%	-4.37%	-1.71%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Applied Industrial Technologies and Xometry, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Industrial Technologies	0	1	6	0	2.86
Xometry	1	4	6	0	2.45

Applied Industrial Technologies presently has a consensus price target of $323.14, suggesting a potential downside of 2.29%. Xometry has a consensus price target of $76.00, suggesting a potential downside of 17.18%. Given Applied Industrial Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Applied Industrial Technologies is more favorable than Xometry.

Risk and Volatility

Applied Industrial Technologies has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Xometry has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

93.5% of Applied Industrial Technologies shares are held by institutional investors. Comparatively, 97.3% of Xometry shares are held by institutional investors. 1.6% of Applied Industrial Technologies shares are held by company insiders. Comparatively, 9.1% of Xometry shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Applied Industrial Technologies and Xometry”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Industrial Technologies	$4.56 billion	2.68	$392.99 million	$10.59	31.23
Xometry	$686.63 million	6.93	-$61.74 million	($1.02)	-89.97

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

Summary

Applied Industrial Technologies beats Xometry on 9 of the 13 factors compared between the two stocks.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.

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.