Better Buy: iRobot vs. 3D Systems

Today's matchup features two companies that are considered disruptive innovators with a focus on smart tech and high tech products. While iRobot (NASDAQ: IRBT) and 3D Systems (NYSE: DDD) have similar business models and financial strategies, the paths their stocks have taken in the past year could not have been more divergent. However, as investors, we are obviously much more interested in where a stock is going than where it has been. Today, we'll take a look through a value investor's lens to determine which stock is a better buy today.

3D Systems custom manufacturing: Image source: 3D Systems

I would ignore the negative PE listed for 3D Systems. 3D Systems has had positive earnings the last four quarters and has projections for profitability going forward. The numbers below show that iRobot is more expensive in the near-term but has a higher expected growth rate for the next five years which generally will justify a higher valuation.

Source: Fool.com