Distribution Solutions Group (NASDAQ:DSGR – Get Rating) and urban-gro (NASDAQ:UGRO – Get Rating) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Distribution Solutions Group has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, urban-gro has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.
Profitability
This table compares Distribution Solutions Group and urban-gro’s 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% |
| urban-gro | 0.02% | 0.04% | 0.03% |
Institutional & Insider Ownership
88.2% of Distribution Solutions Group shares are held by institutional investors. Comparatively, 25.3% of urban-gro shares are held by institutional investors. 51.8% of Distribution Solutions Group shares are held by company insiders. Comparatively, 25.6% of urban-gro shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Distribution Solutions Group and urban-gro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Distribution Solutions Group | 0 | 0 | 0 | 0 | N/A |
| urban-gro | 0 | 0 | 3 | 0 | 3.00 |
urban-gro has a consensus target price of $20.00, suggesting a potential upside of 275.94%. Given urban-gro’s higher probable upside, analysts clearly believe urban-gro is more favorable than Distribution Solutions Group.
Valuation & Earnings
This table compares Distribution Solutions Group and urban-gro’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Distribution Solutions Group | $417.73 million | 2.31 | $9.41 million | $1.57 | 31.62 |
| urban-gro | $62.11 million | 0.91 | -$880,000.00 | ($0.02) | -266.00 |
Distribution Solutions Group has higher revenue and earnings than urban-gro. urban-gro 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.
Summary
Distribution Solutions Group beats urban-gro on 9 of the 12 factors compared between the two stocks.
Distribution Solutions Group Company Profile (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.
urban-gro Company Profile (Get Rating)
urban-gro, Inc. operates as an engineering design services company that integrates complex environmental equipment systems to create indoor cultivation facilities for the commercial horticulture market in the United States, Canada, and Europe. The company offers engineering and design services, including cultivation space programming, integrated cultivation design, and full-facility mechanical, electrical, and plumbing engineering; training services ranging from equipment standard operating procedure libraries to staff training sessions; facility and equipment commissioning services; program overview and pricing; and related-party hardware and software platforms. It also offers an integrated suite of cultivation equipment systems and crop management products, which include environmental controls, fertigation and irrigation distribution, water treatment and wastewater reclamation systems, and purpose-built heating, ventilation, and air conditioning equipment systems; commercial horticulture lighting solutions; rolling and automated container benching systems; specialty fans; and microbial mitigation and odor reduction systems. The company was founded in 2014 and is based in Lafayette, Colorado.
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