WallStSmart

Distribution Solutions Group Inc (DSGR)vsWW Grainger Inc (GWW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WW Grainger Inc generates 818% more annual revenue ($18.84B vs $2.05B). GWW leads profitability with a 9.9% profit margin vs 0.4%. GWW appears more attractively valued with a PEG of 1.73. GWW earns a higher WallStSmart Score of 64/100 (C+).

DSGR

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.91

GWW

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 8.5Value: 4.3Quality: 7.5
Piotroski: 5/9Altman Z: 6.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGRUndervalued (+66.7%)

Margin of Safety

+66.7%

Fair Value

$93.36

Current Price

$34.75

$58.61 discount

UndervaluedFair: $93.36Overvalued

Intrinsic value data unavailable for GWW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGR2 strengths · Avg: 9.0/10
EPS GrowthGrowth
66.9%10/10

Earnings expanding 66.9% YoY

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

GWW4 strengths · Avg: 9.3/10
Return on EquityProfitability
45.3%10/10

Every $100 of equity generates 45 in profit

Altman Z-ScoreHealth
6.2510/10

Safe zone — low bankruptcy risk

Market CapQuality
$60.29B9/10

Large-cap with strong market position

EPS GrowthGrowth
20.5%8/10

Earnings expanding 20.5% YoY

Areas to Watch

DSGR4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

Market CapQuality
$1.61B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

GWW3 concerns · Avg: 4.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.6x4/10

Trading at 14.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DSGR

The strongest argument for DSGR centers on EPS Growth, Price/Book. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : GWW

The strongest argument for GWW centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 10.3% demonstrates continued momentum.

Bear Case : DSGR

The primary concerns for DSGR are Altman Z-Score, Market Cap, Return on Equity. A P/E of 182.9x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : GWW

The primary concerns for GWW are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

GWW carries more volatility with a beta of 1.03 — expect wider price swings.

DSGR is growing revenue faster at 11.0% — sustainability is the question.

GWW generates stronger free cash flow (333M), providing more financial flexibility.

Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GWW scores higher overall (64/100 vs 56/100) and 10.3% revenue growth. DSGR offers better value entry with a 66.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Distribution Solutions Group Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Lawson Products, Inc. sells and distributes specialty products for the industrial, commercial, institutional and government maintenance, repair and operations market. The company is headquartered in Chicago, Illinois.

WW Grainger Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

W. W. Grainger, Inc. is an American Fortune 500 industrial supply company founded in 1927 in Chicago by William W. (Bill) Grainger.

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