Desktop Metal vs Markforged (DM vs AONE Stock) Which one is BETTER?

hey what's going on everyone so today we're going to be comparing marked forge which is going public via one acquisition corp and desktop metal which recently went public via trine acquisition corp in this video we're going to compare the companies themselves and what they're doing differently and similarly and then we're going to compare the numbers so valuation and stock price and then at the end i'm going to discuss which company i prefer so make sure you stay till then also if you're new to the channel consider subscribing for more content like this and if you like videos like this comparing similar companies please let me know in the comments and tell me which comparison you want next i recently just did a comparison between rocket lab and astra which is linked in the description and also these videos take a ton of time and work and one easy way to help me out in return is just to hit that like button below so i would really appreciate that and if we get to 300 likes i will do my next video on the comment below with the most likes so first off both of these are 3d printing companies especially focusing in additive manufacturing which if you're confused between the terms the distinction is that additive manufacturing is 3d printing but consists of more industrial applications both mark forged and desktop metal have an impressive array of printers materials and software starting with marked forge the company was founded in 2013 and is based in watertown massachusetts you can currently purchase stock in markforged via ticker aone pre-merger the company's platform is based on three things their software their printers and their materials their software consists of their proprietary eiger printing software which allows for efficient management of their 3d printers by customers it utilizes cloud services and allows for efficient designing detailed customization and ease of interaction then this is complemented by the blacksmith software which inspects the printing in real time and ensures it's up to standards next up we have their printers their flagship printer for metals is the metal x system this printer comes with a wide range of capabilities with different metals and offers the cheap cost of 3d printing integrated with their best software then for industrial composites we have the x7 x5 and x3 printers the x7 is their flagship printer for industrial composites it prints continuous carbon fiber reinforced parts in just hours and has the ability to replace aluminum and strength price and quality and it can also print functional parts of all types so composite based filaments and continuous fibers the x5 printer is an industrial printer for continuous fiberglass parts it can print parts 10 times stronger than abs which is thermoplastic filament and can potentially replace aluminum parts in the x3 printer which is designed for printing micro carbon fiber filled nylon parts this printer is able to produce particularly high quality and detailed products finally for desktop composite printers we have the mark ii onyx pro and onyx one the mark ii is a flagship printer for desktop composite and can print continuous carbon fiber parts on a desktop the onyx pro can print fiberglass parts on the desktop ten times stronger than abs like the x5 printer and finally the onex one is designed for micro carbon fiber parts for the desktop now as for materials markforged has a solid proprietary foundation of materials they use for metals they've got the 174ph stainless steel copper inconel 625 which is a nickel chromium alloy h13 tool steel and a2 and d2 tool steel for composite base filaments they have onix which is a micro carbon fiber filled nylon onyx fr which is flame resistant onyx esd which is designed to maximize esd safety esd stands for electrostatic discharge and then they have nylon itself for continuous fiber they have carbon fiber kevlar hshd fiberglass and then fiberglass itself they have two methods of printing processes one involves fused filament fabrication which is a more common industry-wide method of 3d printing but the one to pay attention to number two is their proprietary continuous fiber reinforcement method of creating cfr composites i'm not going to bury the science but you can see from this chart that they presented that its tensile strength is many times higher than their own onyx or even aluminum which is aircraft grade so with all that said what's mark ford's path to success well number one they have an extremely solid base of technology that's most important and with that they have the ability to target many industries including aerospace automotive consumer goods education electronics energy defense equipment industrial equipment and medical devices and on their investor presentation if you look at their customer base they have an extremely large base of customers and out of all the companies taken public by specs this might be one of the biggest customer bases i've seen and they're plan to scale up and improve and grow their company is to use their printers that are actively in use to stream back data which is used to help their network software improve and get smarter which can then in turn produce better parts and that'll help grow their customer base and they're currently at 10 000 facilities in the world and hope to be in a hundred thousand in five years so that's mark forge the company now switching to desktop metal the company was founded in late 2015 and is based in richmond virginia you can purchase stock in desktop metal via ticker dm desktop metal announced in august of 2020 that it would be merging with trine acquisition corp or trne stock and the merger was completed in early december now dm stock the company has a base portfolio of four impressive printers the fiber studio system shop system and the production system i'm not going to go into quite as much detail on their printers since i already covered them on depth in a video i did on desktop metal previously which is linked in the description but a quick overview of them the fiverr printer is designed for composite materials and started shipping in q4 of 2020. the studio system is designed for metals and office friendly printing with lower volume and has been out since 2018 the shop system is also designed for metals and a higher volume of printing with more dense parts and finally the production system which is now starting to ship in volume prints metals and is designed for high speed mass production in factories and whereas mark ford highlights the proprietary continuous fiber reinforcement method desktop metal has their proprietary single pass jetting which is a very impressive and highly efficient method of 3d printing it allows for much quicker layers of materials to be built by depositing spreading compacting powder and applying the binder all in one pass it allows for 100 times faster production than that of traditional 3d printers this is something that definitely separates them from most competitors we talked about mark forged customer base well desktop metal also has a large and growing network as you can see here and they also have a particular focus on automotive parts manufacturing with investments from ford and bmw something else that has to be addressed is the recent acquisition of envision tech for 300 million dollars in january of 2021. basically this acquisition served to expand desktop metal into the 3d printing of polymers which envision has an impressive portfolio of envision also was the original inventor of dlp 3d printing technology which is a method of 3d printing using polymers envision also has a large ip portfolio which made them very valuable and has a large amount of customers the acquisition gives desktop metal a big boost into the polymer space especially considering how developed envision is and you can see here they have two printers already printing in volume and two more printers that are expecting to begin shipping earlier this year one thing that stood out to me was that envision has a large customer base using their printers for dental materials and this is something that in general desktop metal is expanding to which they recently announced in their earnings report of desktop health which is a focus on developing 3d printed devices for the medical sector and you can see the list of potential areas they're looking at their acquisition of envision tech is without a doubt a huge catalyst for this focus and something i'd really like to see so i feel like i could talk about this for hours and all about stuff desktop metal is doing but i think that's a good overview so next up i want to talk about the financials and valuations between the two companies so mark forge firstly did around 70 million in revenue in 2020 and is forecasting revenue of 88 million in 2021 122 in 2022 geez that's a lot of twos 226 in 23 398 in 2024 and 706 in 2025. one thing that concerns me is the decline in 2020 but i think that's fair to say it has to do with the global economy due to the virus their profitability is somewhat concerning with the negative ebitda up to 2024 but then apparently skyrocketing to plus 172 million in 2025 with the spac merger with one acquisition corp the companies invited around two billion dollars at ten dollars a share so whatever price they're currently at which right now is 12 bucks a share at the time this video multiply that by the outstanding shares after the merger which will be 206 million and you would get a current market cap which is 2.47 billion at 12 bucks a share now for desktop metal they're currently trading at a market cap of around 4.9 billion at around 20 dollars a share they did 16.5 million in revenue in 2020 with a net loss of almost 100 million adjusted ebitda was negative 73.5 million they're predicting revenues over 100 million in 2021 which is greater than the amount they previously had predicted on their investor presentation but that's likely due to the envision tech acquisition in 2022 they are predicting 168.5 million then 328.7 million 584 million in 2024 and 941 million in 2025. the numbers after 2021 though were from their investor presentation back in august so this certainly might be different than what they were expecting back then so look with the forecasted compound annual growth rate of 68 for mark forged leading up to 2025 in a forecasted compound annual growth rate of 87 for desktop metal both companies are set to grow massively and both have huge potential one interesting thing i've seen is that while arc invest has purchased shares in both companies arc owns shares of mark forged in their arc autonomous technology and robotics portfolio arc q and owns desktop metal in their arc print etf or arc p so clearly they like both companies but it is interesting that they added mark forged to their more flagship portfolio for me looking at both companies my inclination would be to own both i think that both companies offer excellent potential returns but mark forge stands out to me just slightly more because of its valuation being so much cheaper and considering that it has more revenues and a comparable infrastructure to that of desktop metal so that's my take with that said thanks so much for watching today's video if you enjoyed consider subscribing to the channel and liking the video and i hope to catch you next time

Channel: The Daily Trade

Views: 4,019

Rating: 4.9633026 out of 5

Keywords: Stocks, Investing, Stock Market, Finance, The Daily Trade, RMO, IPOE, IPOF, IPOD, PSTH, ZNTE, SEAH, DMYD, GNOG, RSI, HYLN, FSR, SPRQ, LEAP, FUSE, BTAQ, VGAC, SNPR, CCIV, FTOC, PSAC, CIIC, NGA, NPA, SRAC, EXPC, LGVW, RTP, ALTU

Id: t_589200X00

Length: 11min 25sec (685 seconds)

Published: Sat Mar 20 2021