Head to Head Review: Distribution Solutions Group (NASDAQ:DSGR) & Hudson Technologies (NASDAQ:HDSN)

Hudson Technologies (NASDAQ:HDSNGet Rating) and Distribution Solutions Group (NASDAQ:DSGRGet Rating) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Hudson Technologies 25.85% 86.75% 29.58%
Distribution Solutions Group 3.42% 20.28% 10.69%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hudson Technologies $192.75 million 2.26 $32.26 million $1.34 7.25
Distribution Solutions Group $417.73 million 2.55 $9.41 million $1.57 34.97

Hudson Technologies has higher earnings, but lower revenue than Distribution Solutions Group. Hudson 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.

Insider and Institutional Ownership

62.0% of Hudson Technologies shares are held by institutional investors. Comparatively, 88.2% of Distribution Solutions Group shares are held by institutional investors. 14.3% of Hudson Technologies shares are held by insiders. Comparatively, 51.8% of Distribution Solutions Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Hudson Technologies has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Distribution Solutions Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Hudson Technologies and Distribution Solutions Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Technologies 0 0 1 0 3.00
Distribution Solutions Group 0 0 0 0 N/A

Hudson Technologies presently has a consensus target price of $6.50, indicating a potential downside of 33.06%. Given Hudson Technologies’ higher possible upside, analysts plainly believe Hudson Technologies is more favorable than Distribution Solutions Group.

Summary

Hudson Technologies beats Distribution Solutions Group on 7 of the 13 factors compared between the two stocks.

Hudson Technologies Company Profile (Get Rating)

Hudson Technologies, Inc. a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States. The company's products and services include refrigerant and industrial gas sales; refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. It also offers SmartEnergy OPS service, a web-based real time continuous monitoring service for facility's refrigeration systems and other energy systems applications; and Chiller Chemistry and Chill Smart services. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. Hudson Technologies, Inc. was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.

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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