WallStSmart

Distribution Solutions Group Inc (DSGR)vsFerguson Plc (FERG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ferguson Plc generates 1474% more annual revenue ($31.16B vs $1.98B). DSGR leads profitability with a 42.0% profit margin vs 6.3%. FERG appears more attractively valued with a PEG of 1.55. FERG earns a higher WallStSmart Score of 61/100 (C+).

DSGR

Hold

44

out of 100

Grade: D

Growth: 6.0Profit: 7.5Value: 2.0Quality: 5.0

FERG

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 10.0Quality: 6.8
Piotroski: 4/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGRSignificantly Overvalued (-2450.8%)

Margin of Safety

-2450.8%

Fair Value

$1.22

Current Price

$26.50

$25.28 premium

UndervaluedFair: $1.22Overvalued
FERGUndervalued (+39.9%)

Margin of Safety

+39.9%

Fair Value

$445.00

Current Price

$228.84

$216.16 discount

UndervaluedFair: $445.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGR4 strengths · Avg: 9.0/10
Return on EquityProfitability
129.0%10/10

Every $100 of equity generates 129 in profit

Profit MarginProfitability
42.0%10/10

Keeps 42 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.0%8/10

Revenue surging 20.0% year-over-year

FERG4 strengths · Avg: 9.3/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

Market CapQuality
$50.46B9/10

Large-cap with strong market position

EPS GrowthGrowth
23.9%8/10

Earnings expanding 23.9% YoY

Areas to Watch

DSGR4 concerns · Avg: 2.5/10
Market CapQuality
$1.23B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.9%3/10

Operating margin of 1.9%

PEG RatioValuation
2.692/10

Expensive relative to growth rate

P/E RatioValuation
147.2x2/10

Premium valuation, high expectations priced in

FERG4 concerns · Avg: 3.3/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

P/E RatioValuation
25.4x4/10

Moderate valuation

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Free Cash FlowQuality
$-552.13M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DSGR

The strongest argument for DSGR centers on Return on Equity, Profit Margin, Price/Book. Profitability is solid with margins at 42.0% and operating margin at 1.9%. Revenue growth of 20.0% demonstrates continued momentum.

Bull Case : FERG

The strongest argument for FERG centers on Return on Equity, Altman Z-Score, Market Cap.

Bear Case : DSGR

The primary concerns for DSGR are Market Cap, Operating Margin, PEG Ratio. A P/E of 147.2x leaves little room for execution misses.

Bear Case : FERG

The primary concerns for FERG are PEG Ratio, P/E Ratio, Profit Margin.

Key Dynamics to Monitor

DSGR profiles as a growth stock while FERG is a value play — different risk/reward profiles.

FERG carries more volatility with a beta of 1.14 — expect wider price swings.

DSGR is growing revenue faster at 20.0% — sustainability is the question.

DSGR generates stronger free cash flow (5M), providing more financial flexibility.

Bottom Line

FERG scores higher overall (61/100 vs 44/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Distribution Solutions Group Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Lawson Products, Inc. sells and distributes specialty products for the industrial, commercial, institutional and government maintenance, repair and operations market. The company is headquartered in Chicago, Illinois.

Ferguson Plc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada and Central Europe. The company is headquartered in Wokingham, the United Kingdom.

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