WallStSmart

Distribution Solutions Group Inc (DSGR)vsFastenal Company (FAST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 323% more annual revenue ($8.44B vs $2.00B). FAST leads profitability with a 15.4% profit margin vs 0.3%. DSGR appears more attractively valued with a PEG of 2.69. FAST earns a higher WallStSmart Score of 62/100 (C+).

DSGR

Hold

44

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.91

FAST

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 5.3Quality: 7.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGRUndervalued (+66.6%)

Margin of Safety

+66.6%

Fair Value

$93.25

Current Price

$27.41

$65.84 discount

UndervaluedFair: $93.25Overvalued
FASTUndervalued (+54.9%)

Margin of Safety

+54.9%

Fair Value

$103.73

Current Price

$47.16

$56.57 discount

UndervaluedFair: $103.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGR1 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

FAST4 strengths · Avg: 9.0/10
Return on EquityProfitability
32.6%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$51.35B9/10

Large-cap with strong market position

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

DSGR4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

Market CapQuality
$1.26B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

FAST3 concerns · Avg: 3.3/10
P/E RatioValuation
39.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.6x4/10

Trading at 13.6x book value

PEG RatioValuation
3.172/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DSGR

The strongest argument for DSGR centers on Price/Book.

Bull Case : FAST

The strongest argument for FAST centers on Return on Equity, Market Cap, Debt/Equity. Profitability is solid with margins at 15.4% and operating margin at 20.3%. Revenue growth of 12.4% demonstrates continued momentum.

Bear Case : DSGR

The primary concerns for DSGR are Revenue Growth, Altman Z-Score, Market Cap. A P/E of 226.9x leaves little room for execution misses. Thin 0.3% margins leave little buffer for downturns.

Bear Case : FAST

The primary concerns for FAST are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

DSGR profiles as a value stock while FAST is a mature play — different risk/reward profiles.

FAST carries more volatility with a beta of 0.74 — expect wider price swings.

FAST is growing revenue faster at 12.4% — sustainability is the question.

FAST generates stronger free cash flow (320M), providing more financial flexibility.

Bottom Line

FAST scores higher overall (62/100 vs 44/100), backed by strong 15.4% margins and 12.4% revenue growth. DSGR offers better value entry with a 66.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Distribution Solutions Group Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Lawson Products, Inc. sells and distributes specialty products for the industrial, commercial, institutional and government maintenance, repair and operations market. The company is headquartered in Chicago, Illinois.

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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