BlueLinx Holdings Inc. (BXC) vs Distribution Solutions Group, Inc. (DSGR)

BlueLinx Holdings Inc. and Distribution Solutions Group, Inc. are both Industrial Distribution companies. Distribution Solutions Group, Inc. is the larger, with a market value of $1.6B against $580.2M — 2.8× the size. BlueLinx Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Distribution Solutions Group, Inc. trades at 184×. Distribution Solutions Group, Inc. grew revenue faster over the last twelve months: 6.45% against 2.13%. Distribution Solutions Group, Inc. has the higher net margin (0.44% vs −0.06%) and the higher return on invested capital (3.48% vs 2.42%). Across the 21 metrics below, Distribution Solutions Group, Inc. leads on 11 and BlueLinx Holdings Inc. on 10.

Valuation

Metric BXC DSGR Industrial Distribution median
P/E n/m 184.00 28.81
P/S 0.20 0.79 1.10
P/B 0.96 2.47 3.59
Price to free cash flow 10.25 58.80 22.50
EV/EBITDA 11.04 14.61 15.13
EV/Sales 0.29 1.11 1.31
Earnings yield (0.31%) 0.54% 3.16%
Free cash flow yield 9.75% 1.70% 3.85%

Profitability

Metric BXC DSGR Industrial Distribution median
Gross margin 15.84% 32.70% 30.34%
Operating margin 1.15% 3.55% 8.06%
Net margin (0.06%) 0.44% 4.95%
Free cash flow margin 1.93% 1.34% 4.67%
Return on equity (0.31%) 1.37% 14.29%
Return on assets (0.12%) 0.50% 5.30%
Return on invested capital 2.42% 3.48% 8.13%

Growth

Metric BXC DSGR Industrial Distribution median
Revenue growth (TTM) 2.13% 6.45% 7.80%
EPS growth (last fiscal year) (99.56%) 212.50% —
Revenue growth, 5-year CAGR (0.94%) 41.29% 9.01%
Net income growth, 5-year CAGR (69.34%) (11.20%) 0.99%

Health

Metric BXC DSGR Industrial Distribution median
Debt to equity 0.95 1.11 0.53
Current ratio 4.01 2.54 2.47
Net debt to EBITDA 2.84 3.85 1.17

Dividend

Metric BXC DSGR Industrial Distribution median
Dividend yield — — 1.54%
Payout ratio 0.00 0.00 0.00

Size

Metric BXC DSGR Industrial Distribution median
Market cap 580.24m 1.62b 5.60b

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