Distribution Solutions Group Inc (DSGR)vsWatsco Inc (WSO)
DSGR
Distribution Solutions Group Inc
$26.50
+1.38%
INDUSTRIALS · Cap: $1.23B
WSO
Watsco Inc
$367.15
+1.01%
INDUSTRIALS · Cap: $14.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Watsco Inc generates 266% more annual revenue ($7.24B vs $1.98B). DSGR leads profitability with a 42.0% profit margin vs 6.9%. WSO appears more attractively valued with a PEG of 1.48. WSO earns a higher WallStSmart Score of 45/100 (D+).
DSGR
Hold44
out of 100
Grade: D
WSO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2450.8%
Fair Value
$1.22
Current Price
$26.50
$25.28 premium
Margin of Safety
-413.3%
Fair Value
$83.30
Current Price
$367.15
$283.85 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 129 in profit
Keeps 42 of every $100 in revenue as profit
Reasonable price relative to book value
Revenue surging 20.0% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Smaller company, higher risk/reward
Operating margin of 1.9%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
6.9% margin — thin
Weak financial health signals
Revenue declined 10.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : WSO
The strongest argument for WSO centers on Altman Z-Score. PEG of 1.48 suggests the stock is reasonably priced for its growth.
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 : WSO
The primary concerns for WSO are P/E Ratio, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
DSGR profiles as a growth stock while WSO is a value play — different risk/reward profiles.
WSO carries more volatility with a beta of 1.01 — expect wider price swings.
DSGR is growing revenue faster at 20.0% — sustainability is the question.
WSO generates stronger free cash flow (389M), providing more financial flexibility.
Bottom Line
WSO scores higher overall (45/100 vs 44/100). Both earn "Hold" 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.
Watsco Inc
INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA
Watsco, Inc. distributes air conditioning, heating and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico and Puerto Rico. The company is headquartered in Miami, Florida.
Compare with Other INDUSTRIAL DISTRIBUTION Stocks
Want to dig deeper into these stocks?