WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ferguson Plc generates 1432% more annual revenue ($31.45B vs $2.05B). FERG leads profitability with a 6.3% profit margin vs 0.4%. FERG appears more attractively valued with a PEG of 1.38. FERG earns a higher WallStSmart Score of 59/100 (C).

DSGR

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.91

FERG

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.3
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGRUndervalued (+66.7%)

Margin of Safety

+66.7%

Fair Value

$93.36

Current Price

$34.75

$58.61 discount

UndervaluedFair: $93.36Overvalued
FERGSignificantly Overvalued (-79.2%)

Margin of Safety

-79.2%

Fair Value

$149.16

Current Price

$222.54

$73.38 premium

UndervaluedFair: $149.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGR2 strengths · Avg: 9.0/10
EPS GrowthGrowth
66.9%10/10

Earnings expanding 66.9% YoY

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

FERG1 strengths · Avg: 10.0/10
Return on EquityProfitability
32.9%10/10

Every $100 of equity generates 33 in profit

Areas to Watch

DSGR4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

Market CapQuality
$1.61B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

FERG4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.033/10

Elevated debt levels

Free Cash FlowQuality
$-199.04M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DSGR

The strongest argument for DSGR centers on EPS Growth, Price/Book. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : FERG

The strongest argument for FERG centers on Return on Equity. PEG of 1.38 suggests the stock is reasonably priced for its growth.

Bear Case : DSGR

The primary concerns for DSGR are Altman Z-Score, Market Cap, Return on Equity. A P/E of 182.9x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : FERG

The primary concerns for FERG are Revenue Growth, Profit Margin, Debt/Equity.

Key Dynamics to Monitor

FERG carries more volatility with a beta of 1.11 — expect wider price swings.

DSGR is growing revenue faster at 11.0% — sustainability is the question.

DSGR generates stronger free cash flow (16M), providing more financial flexibility.

Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FERG scores higher overall (59/100 vs 56/100). DSGR offers better value entry with a 66.7% margin of safety. Both earn "Buy" and "Buy" 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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