Distribution Solutions Group, Inc. (DSGR) vs Titan Machinery Inc. (TITN)

Distribution Solutions Group, Inc. and Titan Machinery Inc. are both Industrial Distribution companies. Distribution Solutions Group, Inc. is the larger, with a market value of $1.6B against $552.6M — 2.9× the size. Titan Machinery 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 −10.7%. Distribution Solutions Group, Inc. has the higher net margin (0.44% vs −2.46%) and the higher return on invested capital (3.48% vs −0.81%). Across the 21 metrics below, Distribution Solutions Group, Inc. leads on 13 and Titan Machinery Inc. on 8.

Valuation

Metric DSGR TITN Industrial Distribution median
P/E 184.00 n/m 28.81
P/S 0.79 0.23 1.10
P/B 2.47 0.97 3.59
Price to free cash flow 58.80 9.64 22.50
EV/EBITDA 14.61 23.62 15.13
EV/Sales 1.11 0.31 1.31
Earnings yield 0.54% (10.59%) 3.16%
Free cash flow yield 1.70% 10.38% 3.85%

Profitability

Metric DSGR TITN Industrial Distribution median
Gross margin 32.70% 16.47% 30.34%
Operating margin 3.55% (0.41%) 8.06%
Net margin 0.44% (2.46%) 4.95%
Free cash flow margin 1.34% 2.43% 4.67%
Return on equity 1.37% (9.71%) 14.29%
Return on assets 0.50% (3.24%) 5.30%
Return on invested capital 3.48% (0.81%) 8.13%

Growth

Metric DSGR TITN Industrial Distribution median
Revenue growth (TTM) 6.45% (10.67%) 7.80%
EPS growth (last fiscal year) 212.50% (46.01%) —
Revenue growth, 5-year CAGR 41.29% 11.45% 9.01%
Net income growth, 5-year CAGR (11.20%) 0.00% 0.99%

Health

Metric DSGR TITN Industrial Distribution median
Debt to equity 1.11 0.38 0.53
Current ratio 2.54 1.35 2.47
Net debt to EBITDA 3.85 5.85 1.17

Dividend

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

Size

Metric DSGR TITN Industrial Distribution median
Market cap 1.62b 552.55m 5.60b

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