Analyzing BioNexus Gene Lab (NASDAQ:BGLC) and Distribution Solutions Group (NASDAQ:DSGR)
by Kim Johansen · The Markets DailyBioNexus Gene Lab (NASDAQ:BGLC – Get Free Report) and Distribution Solutions Group (NASDAQ:DSGR – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Analyst Ratings
This is a summary of current ratings for BioNexus Gene Lab and Distribution Solutions Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BioNexus Gene Lab | 1 | 0 | 0 | 0 | 1.00 |
| Distribution Solutions Group | 0 | 4 | 0 | 0 | 2.00 |
Distribution Solutions Group has a consensus price target of $35.00, indicating a potential downside of 0.17%. Given Distribution Solutions Group’s stronger consensus rating and higher possible upside, analysts clearly believe Distribution Solutions Group is more favorable than BioNexus Gene Lab.
Earnings and Valuation
This table compares BioNexus Gene Lab and Distribution Solutions Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BioNexus Gene Lab | $3.13 million | 1.13 | -$2.98 million | ($1.26) | -0.96 |
| Distribution Solutions Group | $1.98 billion | 0.82 | $8.35 million | $0.19 | 184.53 |
Distribution Solutions Group has higher revenue and earnings than BioNexus Gene Lab. BioNexus Gene Lab 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.
Risk & Volatility
BioNexus Gene Lab has a beta of 4.22, suggesting that its share price is 322% more volatile than the S&P 500. Comparatively, Distribution Solutions Group has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.
Institutional & Insider Ownership
18.9% of BioNexus Gene Lab shares are held by institutional investors. Comparatively, 91.6% of Distribution Solutions Group shares are held by institutional investors. 0.1% of BioNexus Gene Lab shares are held by company insiders. Comparatively, 78.8% of Distribution Solutions Group shares are held by company 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.
Profitability
This table compares BioNexus Gene Lab and Distribution Solutions Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BioNexus Gene Lab | -82.38% | -32.92% | -29.75% |
| Distribution Solutions Group | 0.44% | 9.33% | 3.41% |
Summary
Distribution Solutions Group beats BioNexus Gene Lab on 11 of the 13 factors compared between the two stocks.
About BioNexus Gene Lab
BioNexus Gene Lab Corp., through its subsidiary, sells chemical raw material products in Malaysia, Indonesia, Vietnam, and other countries in Southeast Asia. The company offers chemical raw material products, which include Polyester Resin SHCP 268, a thixotropic, quick-curing unsaturated polyester resin suitable as a general-purpose resin; Polyester Resin 9509, a general-purpose material used in production of marine boats and water slides; and Polyester Resin 2802 used as a component in the pultrusion process by certain manufacturers. Its products are used to produce handrails, bench tops, automotive and aero parts, and paneling for hospital, laboratory, industrial clean rooms, and covers for various instruments used in manufacturing. The company also involves in developing and providing non-invasive liquid biopsy tests for the early detection of biomarkers to detect potential risk of diseases. It markets its products through its website, warehouse, marketing personnel, and suppliers. The company was incorporated in 2017 and is based in Kuala Lumpur, Malaysia.
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.