Contrasting Fastenal (FAST) & Its Peers

Fastenal (NASDAQ:FAST) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its competitors? We will compare Fastenal to related businesses based on the strength of its valuation, institutional ownership, risk, profitability, dividends, analyst recommendations and earnings.

Valuation & Earnings

This table compares Fastenal and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fastenal	$8.20 billion	$1.26 billion	43.34
Fastenal Competitors	$6.57 billion	$360.25 million	34.21

Fastenal has higher revenue and earnings than its competitors. Fastenal is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Fastenal pays an annual dividend of $1.04 per share and has a dividend yield of 1.9%. Fastenal pays out 83.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.7% and pay out 34.8% of their earnings in the form of a dividend. Fastenal has increased its dividend for 26 consecutive years. Fastenal lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Fastenal and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fastenal	15.62%	35.13%	26.95%
Fastenal Competitors	1.02%	-33.84%	3.51%

Volatility & Risk

Fastenal has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Fastenal’s competitors have a beta of 1.33, meaning that their average share price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Fastenal and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fastenal	2	5	7	0	2.36
Fastenal Competitors	1465	4956	6830	240	2.43

Fastenal currently has a consensus target price of $51.46, indicating a potential downside of 4.23%. As a group, “Trading Companies & Distributors” companies have a potential upside of 9.87%. Given Fastenal’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Fastenal has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

81.4% of Fastenal shares are owned by institutional investors. Comparatively, 51.1% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 0.3% of Fastenal shares are owned by company insiders. Comparatively, 17.1% of shares of all “Trading Companies & Distributors” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Fastenal competitors beat Fastenal on 8 of the 15 factors compared.

Fastenal Company Profile

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally. It offers fasteners, and related industrial and construction supplies under the Fastenal name. The company’s fastener products include threaded fasteners, bolts, nuts, screws, studs, and related washers that are used in manufactured products and construction projects, as well as in the maintenance and repair of machines. It also offers miscellaneous supplies and hardware, including pins, machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories. The company serves the manufacturing market comprising original equipment manufacturers; maintenance, repair, and operations customers; non-residential construction market; farmers, truckers, railroads, mining companies, schools, and retail trades; and oil exploration, production, and refinement companies, as well as federal, state, and local governmental entities. Fastenal Company was founded in 1967 and is headquartered in Winona, Minnesota.