Financial Comparison: Datasea (NASDAQ:DTSS) & Materialise (NASDAQ:MTLS)

by · The Markets Daily

Datasea (NASDAQ:DTSS – Get Free Report) and Materialise (NASDAQ:MTLS – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Insider & Institutional Ownership

82.1% of Datasea shares are owned by institutional investors. Comparatively, 19.3% of Materialise shares are owned by institutional investors. 50.6% of Datasea shares are owned by company insiders. Comparatively, 1.2% of Materialise shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Datasea and Materialise’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
DataseaN/AN/AN/A
Materialise4.85%5.20%3.17%

Valuation and Earnings

This table compares Datasea and Materialise”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Datasea$40.70 million0.14-$2.19 million($0.32)-1.66
Materialise$302.73 million1.56$8.73 million$0.2729.63

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Datasea and Materialise, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Datasea10001.00
Materialise02202.50

Materialise has a consensus target price of $10.00, suggesting a potential upside of 25.00%. Given Materialise’s stronger consensus rating and higher probable upside, analysts plainly believe Materialise is more favorable than Datasea.

Volatility and Risk

Datasea has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Materialise has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Summary

Materialise beats Datasea on 12 of the 14 factors compared between the two stocks.

About Datasea

(Get Free Report)

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

About Materialise

(Get Free Report)

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.