Fastenal (NASDAQ:FAST) versus Travis Perkins (OTCMKTS:TPRKY) Head to Head Review

Fastenal (NASDAQ:FAST) and Travis Perkins (OTCMKTS:TPRKY) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Dividends

Fastenal pays an annual dividend of $0.88 per share and has a dividend yield of 1.9%. Travis Perkins pays an annual dividend of $0.24 per share and has a dividend yield of 3.1%. Fastenal pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fastenal has raised its dividend for 26 consecutive years.

Profitability

This table compares Fastenal and Travis Perkins’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fastenal	15.30%	32.33%	24.62%
Travis Perkins	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Fastenal and Travis Perkins, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fastenal	1	8	4	1	2.36
Travis Perkins	0	0	0	1	4.00

Fastenal currently has a consensus target price of $46.82, suggesting a potential downside of 1.33%. Given Fastenal’s higher possible upside, research analysts clearly believe Fastenal is more favorable than Travis Perkins.

Institutional & Insider Ownership

81.4% of Fastenal shares are held by institutional investors. 0.4% of Fastenal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Fastenal has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Travis Perkins has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Valuation & Earnings

This table compares Fastenal and Travis Perkins”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fastenal	$7.55 billion	7.22	$1.15 billion	$1.04	45.63
Travis Perkins	$5.89 billion	0.28	-$98.91 million	N/A	N/A

Fastenal has higher revenue and earnings than Travis Perkins.

Summary

Fastenal beats Travis Perkins on 12 of the 15 factors compared between the two stocks.

About Fastenal

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.

About Travis Perkins

Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products. Additionally, the company manufactures and supplies staircases, i-joists, precision floor kits, painted MDF profiles, and door kits/sets. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, and CCF brands. It sells its products through branches and distribution centres, as well as online. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.