Head-To-Head Analysis: Distribution Solutions Group (NASDAQ:DSGR) versus Intchains Group (NASDAQ:ICG)

Intchains Group (NASDAQ:ICG) and Distribution Solutions Group (NASDAQ:DSGR) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Analyst Recommendations

This is a summary of current ratings for Intchains Group and Distribution Solutions Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intchains Group	1	0	2	0	2.33
Distribution Solutions Group	1	0	1	0	2.00

Intchains Group presently has a consensus target price of $7.50, suggesting a potential upside of 351.81%. Distribution Solutions Group has a consensus target price of $41.00, suggesting a potential upside of 46.06%. Given Intchains Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Intchains Group is more favorable than Distribution Solutions Group.

Valuation & Earnings

This table compares Intchains Group 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
Intchains Group	$258.91 million	0.39	$7.05 million	$0.21	7.90
Distribution Solutions Group	$1.98 billion	0.66	-$7.33 million	($0.23)	-122.04

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

Insider and Institutional Ownership

91.6% of Distribution Solutions Group shares are held by institutional investors. 76.6% of Distribution Solutions Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intchains Group	6.64%	2.04%	1.93%
Distribution Solutions Group	0.22%	10.51%	3.90%

Risk and Volatility

Intchains Group has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Distribution Solutions Group has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

About Intchains Group

Intchains Group Limited designs and sells application-specific integrated circuit chips for blockchain applications in the People's Republic of China. The company also offers ancillary software, hardware, and other products. It serves distributors. Intchains Group Limited was founded in 2017 and is based in Pudong, China.

About Distribution Solutions Group

Distribution Solutions Group, Inc., a specialty distribution company, engages in the provision of value-added distribution solutions in North America, Europe, Asia, South America, and the Middle East. The company provides its solutions to the maintenance, repair, and operations (MRO); original equipment manufacturer (OEM); and industrial technology markets. It operates through three segments: Lawson, Gexpro Services, and TestEquity. The Lawson segment distributes of specialty products and services to the industrial, commercial, institutional, and government MRO market. The TestEquity segment distributes test and measurement equipment and solutions, industrial and electronic production supplies, and vendor managed inventory programs, as well as converting, fabrication, and adhesive solutions under the TestEquity, Hisco, TEquipment, Techni-Tool, Jensen Tools, and Instrumex brands. The Gexpro Services segment provides supply chain management solutions that offer VMI, kitting, global logistics management, manufacturing localization and import expertise, value engineering, and quality assurance. The company was formerly known as Lawson Products, Inc. and has changed to Distribution Solutions Group, Inc. 2022 Distribution Solutions Group, Inc. was incorporated in 1952 and is headquartered in Fort Worth, Texas.