Distribution Solutions Group (NASDAQ:DSGR – Get Free Report) and Digi Power X (NASDAQ:DGXX – Get Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Risk and Volatility
Distribution Solutions Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Digi Power X has a beta of 5.85, suggesting that its stock price is 485% more volatile than the S&P 500.
Insider and Institutional Ownership
91.6% of Distribution Solutions Group shares are owned by institutional investors. Comparatively, 1.9% of Digi Power X shares are owned by institutional investors. 76.6% of Distribution Solutions Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Distribution Solutions Group | $1.80 billion | 0.75 | -$7.33 million | ($0.23) | -127.87 |
| Digi Power X | $37.00 million | 3.12 | -$6.80 million | ($0.42) | -6.00 |
Digi Power X has lower revenue, but higher earnings than Distribution Solutions Group. Distribution Solutions Group is trading at a lower price-to-earnings ratio than Digi Power X, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Distribution Solutions Group and Digi Power X, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Distribution Solutions Group | 1 | 0 | 1 | 0 | 2.00 |
| Digi Power X | 1 | 0 | 2 | 0 | 2.33 |
Distribution Solutions Group currently has a consensus price target of $41.00, suggesting a potential upside of 39.41%. Digi Power X has a consensus price target of $4.00, suggesting a potential upside of 58.73%. Given Digi Power X’s stronger consensus rating and higher probable upside, analysts clearly believe Digi Power X is more favorable than Distribution Solutions Group.
Profitability
This table compares Distribution Solutions Group and Digi Power X’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Distribution Solutions Group | -0.57% | 10.79% | 3.97% |
| Digi Power X | -39.25% | -47.17% | -35.44% |
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 Digi Power X
Digihost Technology Inc. operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.
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