Head-To-Head Contrast: Global Industrial (NYSE:GIC) versus DNOW (NYSE:DNOW)

DNOW (NYSE:DNOW) and Global Industrial (NYSE:GIC) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares DNOW and Global Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	-4.58%	3.91%	2.25%
Global Industrial	6.06%	21.49%	11.60%

Valuation and Earnings

This table compares DNOW and Global Industrial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.82 billion	0.99	-$89.00 million	($1.07)	-14.49
Global Industrial	$1.38 billion	1.19	$72.10 million	$2.24	19.24

Global Industrial has lower revenue, but higher earnings than DNOW. DNOW is trading at a lower price-to-earnings ratio than Global Industrial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

DNOW has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Global Industrial has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DNOW and Global Industrial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	3	3	1	2.71
Global Industrial	0	2	0	0	2.00

DNOW currently has a consensus target price of $18.20, indicating a potential upside of 17.35%. Given DNOW’s stronger consensus rating and higher probable upside, analysts plainly believe DNOW is more favorable than Global Industrial.

Institutional & Insider Ownership

97.6% of DNOW shares are owned by institutional investors. Comparatively, 31.2% of Global Industrial shares are owned by institutional investors. 1.9% of DNOW shares are owned by insiders. Comparatively, 64.5% of Global Industrial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Global Industrial beats DNOW on 8 of the 15 factors compared between the two stocks.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About Global Industrial

Global Industrial Company operates as an industrial distributor of various industrial and maintenance, repair, and operation (MRO) products in North America. It offers storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, foodservice and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials. The company offers industrial and MRO products under the Global, GlobalIndustrial.com, Nexel, Paramount, Interion, and Absocold trademarks. It serves businesses; state, local, and private educational organizations; and government entities through relationship marketers, e-commerce sites, signature campaigns, and catalogs. The company was formerly known as Systemax Inc. Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.