Reviewing Distribution Solutions Group (NASDAQ:DSGR) & RS Group (OTCMKTS:EENEF)

RS Group (OTCMKTS:EENEF) and Distribution Solutions Group (NASDAQ:DSGR) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for RS Group and Distribution Solutions Group, as provided by MarketBeat.

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

Distribution Solutions Group has a consensus price target of $42.50, suggesting a potential upside of 8.06%. Given Distribution Solutions Group’s higher probable upside, analysts plainly believe Distribution Solutions Group is more favorable than RS Group.

Profitability

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

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

Valuation and Earnings

This table compares RS Group and Distribution Solutions Group”s revenue, earnings per share (EPS) and valuation.

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

RS Group has higher earnings, but lower revenue than Distribution Solutions Group.

Insider & Institutional Ownership

50.4% of RS Group shares are owned by institutional investors. Comparatively, 91.6% of Distribution Solutions Group shares are owned by institutional investors. 76.6% of Distribution Solutions Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Distribution Solutions Group beats RS Group on 7 of the 8 factors compared between the two stocks.

About RS Group

RS Group plc, together with its subsidiaries, distributes various electronics and industrial products and solutions in the United Kingdom, the United States, France, Germany, Italy, Mexico, and internationally. The company provides industrial interconnect and test, industrial automation and control, board-level electronics, and single-board computing products; and tools, consumables, and facilities maintenance products, such as personal protective equipment, site safety products, and 3D printing products. It offers DesignSpark, a software tool, for design engineers; procurement solutions for buyers; and onsite stock solutions for maintenance engineers, as well as provides value added solutions, such as design, procurement, inventory, and maintenance. The company offers its products under the RS, RS Safety Solutions, RS Integrated Supply, RS PRO, DesignSpark, and OKdo brands to designers, builders, and maintainers of industrial equipment and operations. It serves manufacturing, services, and infrastructure industries. The company was formerly known as Electrocomponents plc. RS Group plc was founded in 1928 and is based in London, the United Kingdom.

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.