Additive manufacturing is all the rage these days. Shares of 3D Systems ( NYSE: DDD ) have been on tear, having risen over 200% since its IPO. Investing in this space may seem scary for value investors, but the future of 3-D printing offers the promise of changing the way the world operates. This is what’s known as an industry disruptor; it takes conventional methods and renders them obsolete. If all goes according to plan, 3-D printing will change the way society manufactures everything, and investing early on may lead to life-changing returns. Aside from 3D Systems, the other big player is Stratasys ( NASDAQ: SSYS ). which focuses primarily in the high-end 3-D printing market. Of the two, which one makes the best primary 3-D printing investment for your portfolio?

High immaturity

For being over 24years old, the 3-D printing industry is quite immature. In recent years, the technology behind 3-D printing has evolved rapidly, leading to advancements that could potentially make any company’s product portfolio obsolete. That’s the risk of investing in the 3-D printing revolution of tomorrow with today’s options. We really don’t know exactly what the future will look like and which companies are likely to emerge victorious — the leading companies of today may become the laggards of tomorrow.

3D Systems has taken a conservative, leave-no-stone-unturned approach by aggressively pressuring nearly every segment of 3-D printing, from the consumer enthusiast to the bleeding edge of industrial manufacturing. To cover its bases, 3D Systems has gone on an aggressive acquisition spree, acquiring 17 companies since 2011. Over the long term, this diversified approach will increase its chances of survival, not to mention improve the odds of becoming the premiere destination for 3-D printing. I think it’s clear by now that 3D Systems wants to own the entire 3-D printing market, from design software to selling finished products online.

Stratasys on the other hand, is primarily focused on the high-end 3-D printing market. If the future of 3-D printing is high-end, Stratasys has a concentrated position to benefit. However, if the market grows beyond the high-end, Stratasys has effectively left opportunity on the table.

Material differences

The more print materials a company supports, the better position that company is in to serve more customers. 3D Systems offers notably more printable materials than Stratasys, which is firmly committed to ABS plastic. Aside from plastic, 3D Systems offers the capacity to print in metal through its Direct Metal line of printers. At this time, users can print in titanium, stainless steel, cobalt chrome, and tool steel, at a size no larger than 12.6 inches. For industries like aerospace and automotive, metal printing has the potential to become a huge growth area for 3D Systems, but before that happens, 3D Systems needs to expand the printable footprint before it’s taken seriously.

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