Distribution Solutions Group, Inc. (DSGR) vs MSC Industrial Direct Company, Inc. (MSM)

Distribution Solutions Group, Inc. and MSC Industrial Direct Company, Inc. are both Industrial Distribution companies. MSC Industrial Direct Company, Inc. is the larger, with a market value of $6.2B against $1.6B — 3.8× the size. MSC Industrial Direct Company, Inc. trades at the lower P/E: 28.3× against 146×. Distribution Solutions Group, Inc. grew revenue faster over the last twelve months: 6.57% against 6.37%. MSC Industrial Direct Company, Inc. has the higher net margin (5.55% vs 0.54%) and the higher return on invested capital (10.9% vs 3.44%). Across the 22 metrics below, MSC Industrial Direct Company, Inc. leads on 14 and Distribution Solutions Group, Inc. on 8.

Valuation

Metric DSGR MSM Industrial Distribution median
P/E 145.63 28.35 25.52
P/S 0.77 1.57 1.07
P/B 2.43 4.43 3.42
Price to free cash flow 206.23 27.91 19.68
EV/EBITDA 14.70 15.89 13.75
EV/Sales 1.09 1.68 1.25
Earnings yield 0.69% 3.53% 3.46%
Free cash flow yield 0.48% 3.58% 4.45%

Profitability

Metric DSGR MSM Industrial Distribution median
Gross margin 32.48% 40.88% 29.98%
Operating margin 3.53% 7.99% 7.44%
Net margin 0.54% 5.55% 3.97%
Free cash flow margin 1.77% 5.64% 4.24%
Return on equity 1.73% 15.77% 12.75%
Return on assets 0.63% 8.96% 4.50%
Return on invested capital 3.44% 10.90% 7.52%

Growth

Metric DSGR MSM Industrial Distribution median
Revenue growth (TTM) 6.57% 6.37% 7.51%
EPS growth (last fiscal year) 212.50% 11.48% (3.98%)
Revenue growth, 5-year CAGR 41.29% 4.33% 9.06%
Net income growth, 5-year CAGR (11.20%) 0.52% 0.52%

Health

Metric DSGR MSM Industrial Distribution median
Debt to equity 1.14 0.33 0.40
Current ratio 2.47 1.78 2.41
Net debt to EBITDA 3.85 0.97 1.17

Dividend

Metric DSGR MSM Industrial Distribution median
Dividend yield — 3.08% 1.11%
Payout ratio — 0.87 0.38

Size

Metric DSGR MSM Industrial Distribution median
Market cap 1.62b 6.20b 4.92b

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