DNOW (NYSE:DNOW – Get Free Report) and Xometry (NASDAQ:XMTR – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings for DNOW and Xometry, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DNOW | 0 | 3 | 3 | 1 | 2.71 |
| Xometry | 1 | 4 | 8 | 0 | 2.54 |
DNOW presently has a consensus price target of $18.20, indicating a potential upside of 28.03%. Xometry has a consensus price target of $123.64, indicating a potential upside of 14.40%. Given DNOW’s stronger consensus rating and higher probable upside, research analysts clearly believe DNOW is more favorable than Xometry.
Earnings & Valuation
This table compares DNOW and Xometry”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DNOW | $2.82 billion | 0.91 | -$89.00 million | ($1.07) | -13.29 |
| Xometry | $686.63 million | 8.16 | -$61.74 million | ($0.60) | -180.13 |
Xometry has lower revenue, but higher earnings than DNOW. Xometry is trading at a lower price-to-earnings ratio than DNOW, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
DNOW has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Xometry has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Profitability
This table compares DNOW and Xometry’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DNOW | -4.58% | 3.91% | 2.25% |
| Xometry | -1.97% | 0.20% | 0.09% |
Insider & Institutional Ownership
97.6% of DNOW shares are held by institutional investors. Comparatively, 97.3% of Xometry shares are held by institutional investors. 1.9% of DNOW shares are held by company insiders. Comparatively, 9.1% of Xometry shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
DNOW beats Xometry on 8 of the 15 factors compared between the two stocks.
About DNOW
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
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.
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