Head to Head Survey: Ryerson (NYSE:RYZ) versus Distribution Solutions Group (NASDAQ:DSGR)

Distribution Solutions Group (NASDAQ:DSGR) and Ryerson (NYSE:RYZ) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Profitability

This table compares Distribution Solutions Group and Ryerson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Distribution Solutions Group	0.44%	9.33%	3.41%
Ryerson	-0.56%	-0.62%	-0.21%

Risk & Volatility

Distribution Solutions Group has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Ryerson has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Distribution Solutions Group and Ryerson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Distribution Solutions Group	0	4	0	0	2.00
Ryerson	1	2	0	0	1.67

Distribution Solutions Group presently has a consensus target price of $35.00, indicating a potential upside of 0.14%. Given Distribution Solutions Group’s stronger consensus rating and higher possible upside, analysts plainly believe Distribution Solutions Group is more favorable than Ryerson.

Valuation & Earnings

This table compares Distribution Solutions Group and Ryerson”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	$1.98 billion	0.82	$8.35 million	$0.19	183.95
Ryerson	$4.57 billion	0.27	-$56.40 million	($1.24)	-19.21

Distribution Solutions Group has higher earnings, but lower revenue than Ryerson. Ryerson is trading at a lower price-to-earnings ratio than Distribution Solutions Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

91.6% of Distribution Solutions Group shares are owned by institutional investors. Comparatively, 94.8% of Ryerson shares are owned by institutional investors. 78.8% of Distribution Solutions Group shares are owned by company insiders. Comparatively, 6.6% of Ryerson shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Distribution Solutions Group beats Ryerson on 10 of the 13 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 Ryerson

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States, Canada, Mexico, and China. It offers a line of products in carbon steel, stainless steel, alloy steels, and aluminum, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural, and tubing. The company also provides various processing services, such as bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, polishing, punching, rolling, sawing, scribing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials. It serves various industries, including commercial ground transportation, metal fabrication and machine shops, industrial machinery and equipment manufacturing, consumer durable equipment, HVAC manufacturing, construction equipment manufacturing, food processing and agricultural equipment manufacturing, and oil and gas. The company was founded in 1842 and is headquartered in Chicago, Illinois.