Critical Survey: RS Group (OTCMKTS:EENEF) and Distribution Solutions Group (NASDAQ:DSGR)

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

Insider and Institutional Ownership

91.6% of Distribution Solutions Group shares are held by institutional investors. Comparatively, 50.4% of RS 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, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Distribution Solutions Group and RS 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%
RS Group	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Distribution Solutions Group	$1.70 billion	1.11	-$8.97 million	($0.42)	-95.64
RS Group	N/A	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Distribution Solutions Group and RS Group, as reported by MarketBeat.com.

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

Distribution Solutions Group presently has a consensus target price of $42.50, indicating a potential upside of 5.80%. Given Distribution Solutions Group’s higher possible upside, analysts clearly believe Distribution Solutions Group is more favorable than RS Group.

Summary

Distribution Solutions Group beats RS Group on 7 of the 8 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 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.