Better Buy: Stratasys vs. Prospect Capital

In today's ­first round match-up of The Motley Fool's Better-Buy Tournament, Stratasys squares off against Prospect Capital in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other as they make the case for their stocks, with the winner determined by you, the readers.

Layer by layer, Stratasys (NASDAQ: SSYS  ) is establishing itself as the top dog in 3-D printing, according to Motley Fool analyst Simon Erickson. The company now has more than 75,000 systems installed worldwide -- giving it a strong recurring revenue stream from consumable materials and service contracts. Stratasys has deployed that cash to efficiently grow at all points of the market. Its MakerBot subsidiary is driving mass-market awareness, and its industrial relationships are developing new applications every year. Industrywide, 3-D printing revenue is expected to nearly quintuple during the next decade, and Stratasys is in the perfect position to benefit.

Motley Fool financials analyst David Hanson believes Prospect Capital (NASDAQ: PSEC  ) should move on to the next round because of the company's largest investment portfolio, which has excellent credit quality. Prospect Capital's BDC structure allows it to pass earnings through to shareholders, which results in a big dividend yield. Finally, David sees Prospect's large size and scale as a big advantage when it comes to finding new investments and getting favorable prices. 

Watch these analysts square off in the following video, and then vote for a winner. Then check out the other companies in The Motley Fool's Better-Buy Bracket

This year's winning stock?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Cast your vote in the poll below the video!


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 22, 2014, at 12:03 PM, TomMcC2 wrote:

    I selected PSEC. Were I one or more decades younger (I'm 73) I would have selected Stratasys. For a older retired investor PSEC has proven to be an excellent investment and is now the largest in our portfolio.

Add your comment.

DocumentId: 2886101, ~/Articles/ArticleHandler.aspx, 7/25/2014 8:15:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement