Intchains Group (NASDAQ:ICG) and Distribution Solutions Group (NASDAQ:DSGR) Financial Comparison

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

Earnings and Valuation

This table compares Distribution Solutions Group and Intchains Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Distribution Solutions Group	$1.98 billion	0.63	-$7.33 million	($0.23)	-117.43
Intchains Group	$258.91 million	0.35	$7.05 million	$0.21	7.19

Intchains Group has lower revenue, but higher earnings 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.

Volatility and Risk

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

Profitability

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

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

Institutional and Insider Ownership

91.6% of Distribution Solutions Group shares are owned by institutional investors. 79.8% of Distribution Solutions Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Distribution Solutions Group and Intchains Group, as provided by MarketBeat.

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

Distribution Solutions Group presently has a consensus target price of $41.00, indicating a potential upside of 51.80%. Intchains Group has a consensus target price of $7.50, indicating a potential upside of 396.69%. Given Intchains Group’s stronger consensus rating and higher probable upside, analysts plainly believe Intchains Group is more favorable than Distribution Solutions Group.

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.

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.