Financial Comparison: Desktop Metal (NYSE:DM) versus OriginClear (OTCMKTS:OCLN)

OriginClear (OTCMKTS:OCLN) and Desktop Metal (NYSE:DM) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Volatility and Risk

OriginClear has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Desktop Metal has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares OriginClear and Desktop Metal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OriginClear	$30,000.00	161.64	-$11.63 million	N/A	N/A
Desktop Metal	$189.70 million	0.44	-$323.27 million	($11.20)	-0.22

OriginClear has higher earnings, but lower revenue than Desktop Metal.

Insider & Institutional Ownership

56.3% of Desktop Metal shares are held by institutional investors. 0.4% of OriginClear shares are held by insiders. Comparatively, 14.2% of Desktop Metal shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares OriginClear and Desktop Metal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OriginClear	N/A	N/A	-11.62%
Desktop Metal	-217.20%	-44.48%	-18.75%

Analyst Ratings

This is a summary of current ratings and price targets for OriginClear and Desktop Metal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OriginClear	0	0	0	0	0.00
Desktop Metal	0	2	0	0	2.00

Desktop Metal has a consensus target price of $5.50, suggesting a potential upside of 118.69%. Given Desktop Metal’s stronger consensus rating and higher possible upside, analysts clearly believe Desktop Metal is more favorable than OriginClear.

Summary

OriginClear beats Desktop Metal on 6 of the 11 factors compared between the two stocks.

About OriginClear

OriginClear, Inc. provides water treatment solutions worldwide. The company designs and manufactures a line of water treatment systems for municipal, industrial, and pure water applications. It also offers a range of services, including maintenance contracts, retrofits, and replacement assistance; and rents equipment through contracts of varying duration, as well as provides prefabricated water transport and treatment systems. The company was formerly known as OriginOil, Inc. and changed its name to OriginClear, Inc. in April 2015. OriginClear, Inc. was incorporated in 2007 and is headquartered in Clearwater, Florida.

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 Shop System, an entry-level metal 3D printing using binder jetting; X-series platform that provides binder jet 3D printing of specialty materials, including metals and ceramics, and tools; and P-Series offers high-speed metal 3D printing. It also provides Einstein series, designed for dental professionals which offers 3D printing; ETEC Xtreme 8K platform, a DLP printer with two 385 nm overhead projectors for high-volume production; ETEC Pro XL for industrial polymer 3D printer; S-Max and S-Max Pro platforms, which provides digital casting solutions; and 3D-Bioplotter platform which offers biofabrication solution. In addition, the company offers 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.