Distribution Solutions Group (NASDAQ:DSGR – Get Rating) and Hudson Technologies (NASDAQ:HDSN – Get Rating) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.
Profitability
This table compares Distribution Solutions Group and Hudson Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Distribution Solutions Group | 3.42% | 20.28% | 10.69% |
| Hudson Technologies | 25.85% | 86.75% | 29.58% |
Risk and Volatility
Distribution Solutions Group has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Hudson Technologies has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Earnings and Valuation
This table compares Distribution Solutions Group and Hudson Technologies’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Distribution Solutions Group | $417.73 million | 2.36 | $9.41 million | $1.57 | 32.36 |
| Hudson Technologies | $192.75 million | 1.73 | $32.26 million | $1.34 | 5.53 |
Hudson Technologies has lower revenue, but higher earnings than Distribution Solutions Group. Hudson Technologies is trading at a lower price-to-earnings ratio than Distribution Solutions Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
88.2% of Distribution Solutions Group shares are owned by institutional investors. Comparatively, 62.0% of Hudson Technologies shares are owned by institutional investors. 51.8% of Distribution Solutions Group shares are owned by insiders. Comparatively, 14.3% of Hudson Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Distribution Solutions Group and Hudson Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Distribution Solutions Group | 0 | 0 | 0 | 0 | N/A |
| Hudson Technologies | 0 | 0 | 1 | 0 | 3.00 |
Hudson Technologies has a consensus price target of $6.50, suggesting a potential downside of 12.28%. Given Hudson Technologies’ higher probable upside, analysts plainly believe Hudson Technologies is more favorable than Distribution Solutions Group.
Summary
Hudson Technologies beats Distribution Solutions Group on 7 of the 13 factors compared between the two stocks.
About Distribution Solutions Group (Get Rating)
Lawson Products, Inc. sells and distributes specialty products to the industrial, commercial, institutional, and government maintenance, repair, and operations market. It sells its products to customers in the United States, Puerto Rico, Canada, Mexico, and the Caribbean. The company was founded in 1952 and is headquartered in Chicago, Illinois.
About Hudson Technologies (Get Rating)
Hudson Technologies, Inc. a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States. The company’s products and services include refrigerant and industrial gas sales; refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. It also offers SmartEnergy OPS service, a web-based real time continuous monitoring service for facility’s refrigeration systems and other energy systems applications; and Chiller Chemistry and Chill Smart services. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. Hudson Technologies, Inc. was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.
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