Comparing Doman Building Materials Group (OTCMKTS:CWXZF) and Distribution Solutions Group (NASDAQ:DSGR)

Distribution Solutions Group (NASDAQ:DSGR) and Doman Building Materials Group (OTCMKTS:CWXZF) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Distribution Solutions Group and Doman Building Materials Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Distribution Solutions Group	0	0	2	0	3.00
Doman Building Materials Group	0	0	0	0	N/A

Distribution Solutions Group presently has a consensus price target of $42.50, suggesting a potential upside of 8.06%. Given Distribution Solutions Group’s higher possible upside, equities research analysts plainly believe Distribution Solutions Group is more favorable than Doman Building Materials Group.

Insider and Institutional Ownership

91.6% of Distribution Solutions Group shares are held by institutional investors. Comparatively, 21.8% of Doman Building Materials Group shares are held by institutional investors. 76.6% of Distribution Solutions Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Distribution Solutions Group and Doman Building Materials Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Distribution Solutions Group	-1.25%	7.42%	3.12%
Doman Building Materials Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Distribution Solutions Group and Doman Building Materials Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Distribution Solutions Group	$1.70 billion	1.08	-$8.97 million	($0.42)	-93.64
Doman Building Materials Group	N/A	N/A	N/A	$0.43	14.31

Doman Building Materials Group has lower revenue, but higher earnings than Distribution Solutions Group. Distribution Solutions Group is trading at a lower price-to-earnings ratio than Doman Building Materials Group, indicating that it is currently the more affordable of the two stocks.

Summary

Distribution Solutions Group beats Doman Building Materials Group on 7 of the 10 factors compared between the two stocks.

About Distribution Solutions Group

Distribution Solutions Group, Inc., a specialty distribution company, engages in the provision of value-added distribution solutions in North America, Europe, Asia, South America, and the Middle East. The company provides its solutions to the maintenance, repair, and operations (MRO); original equipment manufacturer (OEM); and industrial technology markets. It operates through three segments: Lawson, Gexpro Services, and TestEquity. The Lawson segment distributes of specialty products and services to the industrial, commercial, institutional, and government MRO market. The TestEquity segment distributes test and measurement equipment and solutions, industrial and electronic production supplies, and vendor managed inventory programs, as well as converting, fabrication, and adhesive solutions under the TestEquity, Hisco, TEquipment, Techni-Tool, Jensen Tools, and Instrumex brands. The Gexpro Services segment provides supply chain management solutions that offer VMI, kitting, global logistics management, manufacturing localization and import expertise, value engineering, and quality assurance. The company was formerly known as Lawson Products, Inc. and has changed to Distribution Solutions Group, Inc. 2022 Distribution Solutions Group, Inc. was incorporated in 1952 and is headquartered in Fort Worth, Texas.

About Doman Building Materials Group

Doman Building Materials Group Ltd., through its subsidiaries, engages in the wholesale distribution of building materials and home renovation products in the United States and Canada. The company offers treated wood; siding and trim; decking and aluminum railing; engineered wood products; roofing products; insulation and wrap products; and lumber and plywood products. It is also involved in agricultural post-peeling and pressure treating activities, as well as timber ownership and management of private timberlands and forest licenses; and provides other value-add services. In addition, the company distributes lumber products. It sells its products to small independent lumber yards, regional building material dealers, home improvement chains, and retailers. The company serves its products to new home construction, home renovation, and industrial markets. The company was formerly known as CanWel Building Materials Group Ltd. and changed its name to Doman Building Materials Group Ltd. in May 2021. Doman Building Materials Group Ltd. was founded in 1989 and is headquartered in Vancouver, Canada.