Applied Industrial Technologies (NYSE:AIT) versus Distribution Solutions Group (NASDAQ:DSGR) Head to Head Survey

Applied Industrial Technologies (NYSE:AITGet Rating) and Distribution Solutions Group (NASDAQ:DSGRGet Rating) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

92.9% of Applied Industrial Technologies shares are owned by institutional investors. Comparatively, 88.2% of Distribution Solutions Group shares are owned by institutional investors. 2.4% of Applied Industrial Technologies shares are owned by company insiders. Comparatively, 51.8% of Distribution Solutions Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Applied Industrial Technologies and Distribution Solutions Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Industrial Technologies $3.24 billion 1.27 $144.76 million $6.08 17.57
Distribution Solutions Group $417.73 million 1.92 $9.41 million $1.57 26.36

Applied Industrial Technologies has higher revenue and earnings than Distribution Solutions Group. Applied Industrial Technologies is trading at a lower price-to-earnings ratio than Distribution Solutions Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Applied Industrial Technologies and Distribution Solutions Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Industrial Technologies 6.52% 23.58% 10.35%
Distribution Solutions Group 3.42% 20.28% 10.69%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Applied Industrial Technologies and Distribution Solutions Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Industrial Technologies 0 0 2 0 3.00
Distribution Solutions Group 0 0 0 0 N/A

Applied Industrial Technologies presently has a consensus price target of $116.50, indicating a potential upside of 9.08%. Given Applied Industrial Technologies’ higher possible upside, research analysts plainly believe Applied Industrial Technologies is more favorable than Distribution Solutions Group.

Risk and Volatility

Applied Industrial Technologies has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Distribution Solutions Group has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Summary

Applied Industrial Technologies beats Distribution Solutions Group on 9 of the 13 factors compared between the two stocks.

Applied Industrial Technologies Company Profile (Get Rating)

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. It operates through two segments, Service Center Based Distribution, and Fluid Power & Flow Control. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides equipment repair and technical support services. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as to government entities. Applied Industrial Technologies, Inc. was founded in 1923 and is headquartered in Cleveland, Ohio.

Distribution Solutions Group Company Profile (Get Rating)

Lawson Products, Inc. sells and distributes specialty products to the industrial, commercial, institutional, and government maintenance, repair, and operations market. It sells its products to customers in the United States, Puerto Rico, Canada, Mexico, and the Caribbean. The company was founded in 1952 and is headquartered in Chicago, Illinois.

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