Distribution Solutions Group (NASDAQ:DSGR – Get Free Report) and Arbe Robotics (NASDAQ:ARBE – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Analyst Ratings
This is a summary of recent ratings and price targets for Distribution Solutions Group and Arbe Robotics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Distribution Solutions Group | 1 | 1 | 2 | 0 | 2.25 |
| Arbe Robotics | 1 | 0 | 3 | 0 | 2.50 |
Distribution Solutions Group currently has a consensus target price of $34.50, suggesting a potential upside of 25.64%. Arbe Robotics has a consensus target price of $2.33, suggesting a potential upside of 174.51%. Given Arbe Robotics’ stronger consensus rating and higher possible upside, analysts plainly believe Arbe Robotics is more favorable than Distribution Solutions Group.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Distribution Solutions Group | 0.27% | 8.49% | 3.13% |
| Arbe Robotics | -2,817.97% | -83.44% | -54.47% |
Earnings & Valuation
This table compares Distribution Solutions Group and Arbe Robotics”s top-line 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 | 0.64 | $8.35 million | $0.12 | 228.83 |
| Arbe Robotics | $1.03 million | 101.22 | -$46.42 million | ($0.36) | -2.36 |
Distribution Solutions Group has higher revenue and earnings than Arbe Robotics. Arbe Robotics 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.
Institutional and Insider Ownership
91.6% of Distribution Solutions Group shares are owned by institutional investors. Comparatively, 33.4% of Arbe Robotics shares are owned by institutional investors. 78.8% of Distribution Solutions Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Distribution Solutions Group has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Summary
Distribution Solutions Group beats Arbe Robotics on 9 of the 14 factors compared between the two stocks.
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 Arbe Robotics
Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
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