WallStSmart

DXP Enterprises Inc (DXPE)vsFastenal Company (FAST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 324% more annual revenue ($8.75B vs $2.06B). FAST leads profitability with a 15.4% profit margin vs 4.3%. DXPE appears more attractively valued with a PEG of 0.55. FAST earns a higher WallStSmart Score of 62/100 (C+).

DXPE

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 6.0Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: 2.65

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

DXPESignificantly Overvalued (-42.5%)

Margin of Safety

-42.5%

Fair Value

$103.92

Current Price

$192.36

$88.44 premium

UndervaluedFair: $103.92Overvalued
FASTUndervalued (+52.9%)

Margin of Safety

+52.9%

Fair Value

$106.15

Current Price

$51.84

$54.31 discount

UndervaluedFair: $106.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DXPE1 strengths · Avg: 8.0/10
PEG RatioValuation
0.558/10

Growing faster than its price suggests

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
$57.36B9/10

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

DXPE4 concerns · Avg: 3.0/10
P/E RatioValuation
29.4x4/10

Moderate valuation

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Debt/EquityHealth
1.763/10

Elevated debt levels

EPS GrowthGrowth
-2.0%2/10

Earnings declined 2.0%

FAST3 concerns · Avg: 2.7/10
Price/BookValuation
14.6x4/10

Trading at 14.6x book value

PEG RatioValuation
3.452/10

Expensive relative to growth rate

P/E RatioValuation
42.7x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DXPE

The strongest argument for DXPE centers on PEG Ratio. PEG of 0.55 suggests the stock is reasonably priced for its growth.

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 : DXPE

The primary concerns for DXPE are P/E Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.76 is elevated, increasing financial risk. Thin 4.3% margins leave little buffer for downturns.

Bear Case : FAST

The primary concerns for FAST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 42.7x leaves little room for execution misses.

Key Dynamics to Monitor

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

DXPE carries more volatility with a beta of 0.97 — expect wider price swings.

FAST is growing revenue faster at 14.7% — sustainability is the question.

FAST generates stronger free cash flow (78M), providing more financial flexibility.

Bottom Line

FAST scores higher overall (62/100 vs 53/100), 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.

DXP Enterprises Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

DXP Enterprises, Inc. is dedicated to the distribution of maintenance, repair and operation (MRO) products, equipment and services to industrial and energy customers primarily in the United States and Canada. The company is headquartered in Houston, Texas.

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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