WallStSmart

DXP Enterprises Inc (DXPE)vsFastenal Company (FAST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 310% more annual revenue ($8.44B 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

50

out of 100

Grade: C-

Growth: 5.3Profit: 6.0Value: 4.7Quality: 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 (-43.0%)

Margin of Safety

-43.0%

Fair Value

$103.59

Current Price

$169.05

$65.46 premium

UndervaluedFair: $103.59Overvalued
FASTUndervalued (+55.6%)

Margin of Safety

+55.6%

Fair Value

$103.39

Current Price

$46.12

$57.27 discount

UndervaluedFair: $103.39Overvalued

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
32.6%10/10

Every $100 of equity generates 33 in profit

Altman Z-ScoreHealth
6.5710/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.87B9/10

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

DXPE4 concerns · Avg: 3.0/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

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
13.3x4/10

Trading at 13.3x book value

PEG RatioValuation
3.332/10

Expensive relative to growth rate

P/E RatioValuation
40.8x2/10

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 20.3%. Revenue growth of 12.4% 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 40.8x 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 1.00 — 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 50/100), backed by strong 15.4% margins and 12.4% 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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