With a market cap of more than $49 billion, Hewlett-Packard will become the biggest player in the 3D printing industry. Therefore, the thought of producing faster and cheaper 3D printers isn't too far-fetched for HP as the company has enough resources to fund the Research and Development (R&D) of this technology. To put into perspective, HP spent more than $3.4 billion on R&D in the preceding year, therefore it's evident that the company will not shy away from spending on R&D once it enters the market.
Furthermore, with more than $13 billion in cash, Hewlett-Packard can even consider acquiring other small name players like Arcam AB (OTC: OTC:AMAVF), Organovo (ONVO), and ExOne (XONE), which will diversify its product offerings. All these companies have an annual revenue of less than $50 million, but they are enhancing their revenues rapidly by improving their product offerings and may become a takeover target for Hewlett-Packard in the future.
My favorite paragraph from the article is the author comparing a TTM P/E for 3D and then using a Forward P/E for HP.....Hilarious..... (See below)
At present, 3D Systems is trading at roughly $70.40, and with a trailing P/E ratio of 152.38, it is obvious that the stock is expensive. By comparison, HP is trading at $25.94 and has a forward P/E ratio of 7.09. Therefore, investors looking to benefit from the 3D printing business will have an economical and more diversified option in the form of HP, when it enters the market. In addition, a high dividend yield of 2.40% will also tempt investors into buying HP's stock.