WallStSmart

Now Inc (DNOW)vsFastenal Company (FAST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 114% more annual revenue ($8.75B vs $4.08B). FAST leads profitability with a 15.4% profit margin vs -4.6%. FAST earns a higher WallStSmart Score of 62/100 (C+).

DNOW

Buy

56

out of 100

Grade: C

Growth: 8.7Profit: 3.0Value: 5.3Quality: 6.5
Piotroski: 2/9Altman Z: 1.53

FAST

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 5.3Quality: 9.0
Piotroski: 5/9Altman Z: 6.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DNOWUndervalued (+9.2%)

Margin of Safety

+9.2%

Fair Value

$18.24

Current Price

$15.65

$2.59 discount

UndervaluedFair: $18.24Overvalued
FASTUndervalued (+53.1%)

Margin of Safety

+53.1%

Fair Value

$105.17

Current Price

$49.32

$55.85 discount

UndervaluedFair: $105.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DNOW3 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
108.1%10/10

Revenue surging 108.1% year-over-year

EPS GrowthGrowth
90.5%10/10

Earnings expanding 90.5% YoY

FAST5 strengths · Avg: 9.2/10
Return on EquityProfitability
33.2%10/10

Every $100 of equity generates 33 in profit

Altman Z-ScoreHealth
6.5710/10

Safe zone — low bankruptcy risk

Market CapQuality
$56.59B9/10

Large-cap with strong market position

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Areas to Watch

DNOW4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Operating MarginProfitability
1.1%3/10

Operating margin of 1.1%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-6.6%2/10

ROE of -6.6% — below average capital efficiency

FAST3 concerns · Avg: 2.7/10
Price/BookValuation
13.9x4/10

Trading at 13.9x book value

PEG RatioValuation
3.262/10

Expensive relative to growth rate

P/E RatioValuation
42.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DNOW

The strongest argument for DNOW centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 108.1% demonstrates continued momentum.

Bull Case : FAST

The strongest argument for FAST centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 21.0%. Revenue growth of 14.7% demonstrates continued momentum.

Bear Case : DNOW

The primary concerns for DNOW are Altman Z-Score, Operating Margin, Piotroski F-Score.

Bear Case : FAST

The primary concerns for FAST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 42.1x leaves little room for execution misses.

Key Dynamics to Monitor

DNOW profiles as a hypergrowth stock while FAST is a mature play — different risk/reward profiles.

DNOW carries more volatility with a beta of 0.88 — expect wider price swings.

DNOW is growing revenue faster at 108.1% — sustainability is the question.

DNOW generates stronger free cash flow (124M), providing more financial flexibility.

Bottom Line

FAST scores higher overall (62/100 vs 56/100), backed by strong 15.4% margins and 14.7% revenue growth. 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.

Now Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

NOW Inc. distributes downstream power and industrial products for oil refining, chemical processing, LNG terminals, power generation services, and industrial manufacturing operations in the United States, Canada, and internationally. The company is headquartered in Houston, Texas.

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Fastenal Company

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Fastenal Company is an American company based in Winona, Minnesota. Fastenal's service model centers on approximately 3,200 in-market locations, each providing custom inventory, and a dedicated sales team to support local businesses. Fastenal offers companies supply chain solutions that help business reduce inventory touches, and supply chain waste.

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