WallStSmart

Distribution Solutions Group Inc (DSGR)vsWW Grainger Inc (GWW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WW Grainger Inc generates 806% more annual revenue ($17.94B vs $1.98B). DSGR leads profitability with a 42.0% profit margin vs 9.5%. GWW appears more attractively valued with a PEG of 1.81. GWW earns a higher WallStSmart Score of 50/100 (C-).

DSGR

Hold

44

out of 100

Grade: D

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

GWW

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 7.3Quality: 7.3
Piotroski: 5/9
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
GWWSignificantly Overvalued (-399.9%)

Margin of Safety

-399.9%

Fair Value

$240.52

Current Price

$1075.87

$835.35 premium

UndervaluedFair: $240.52Overvalued

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

GWW2 strengths · Avg: 9.5/10
Return on EquityProfitability
46.1%10/10

Every $100 of equity generates 46 in profit

Market CapQuality
$50.97B9/10

Large-cap with strong market position

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

GWW4 concerns · Avg: 4.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.7x4/10

Trading at 13.7x book value

Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

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 : GWW

The strongest argument for GWW centers on Return on Equity, 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 : GWW

The primary concerns for GWW are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

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

GWW carries more volatility with a beta of 1.09 — expect wider price swings.

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

GWW generates stronger free cash flow (269M), providing more financial flexibility.

Bottom Line

GWW scores higher overall (50/100 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.

WW Grainger Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

W. W. Grainger, Inc. is an American Fortune 500 industrial supply company founded in 1927 in Chicago by William W. (Bill) Grainger.

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