urban-gro (NASDAQ:UGRO – Get Rating) and Distribution Solutions Group (NASDAQ:DSGR – Get Rating) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Institutional and Insider Ownership
25.3% of urban-gro shares are owned by institutional investors. Comparatively, 88.2% of Distribution Solutions Group shares are owned by institutional investors. 25.6% of urban-gro shares are owned by company insiders. Comparatively, 51.8% of Distribution Solutions Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares urban-gro and Distribution Solutions Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| urban-gro | $62.11 million | 1.05 | -$880,000.00 | ($0.02) | -307.50 |
| Distribution Solutions Group | $417.73 million | 2.05 | $9.41 million | $1.57 | 28.03 |
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.
Analyst Ratings
This is a summary of current ratings and recommmendations for urban-gro and Distribution Solutions Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| urban-gro | 0 | 0 | 3 | 0 | 3.00 |
| Distribution Solutions Group | 0 | 0 | 0 | 0 | N/A |
urban-gro presently has a consensus price target of $20.00, suggesting a potential upside of 225.20%. Given urban-gro’s higher possible upside, equities analysts plainly believe urban-gro is more favorable than Distribution Solutions Group.
Profitability
This table compares urban-gro and Distribution Solutions Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| urban-gro | 0.02% | 0.04% | 0.03% |
| Distribution Solutions Group | 3.42% | 20.28% | 10.69% |
Risk & Volatility
urban-gro has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Distribution Solutions Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Summary
Distribution Solutions Group beats urban-gro on 10 of the 13 factors compared between the two stocks.
About urban-gro (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.
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.
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