Fastenal Company (FAST)vsWatsco Inc (WSO)
FAST
Fastenal Company
$52.99
+0.17%
INDUSTRIALS · Cap: $59.56B
WSO
Watsco Inc
$304.34
-2.19%
INDUSTRIALS · Cap: $12.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Fastenal Company generates 22% more annual revenue ($9.08B vs $7.44B). FAST leads profitability with a 15.6% profit margin vs 6.3%. WSO appears more attractively valued with a PEG of 1.15. FAST earns a higher WallStSmart Score of 64/100 (C+).
FAST
Buy64
out of 100
Grade: C+
WSO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+50.7%
Fair Value
$107.53
Current Price
$52.99
$54.54 discount
Margin of Safety
-89.3%
Fair Value
$225.93
Current Price
$304.34
$78.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 34 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Conservative balance sheet, low leverage
Strong operational efficiency at 21.5%
15.5% revenue growth
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Trading at 14.6x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
6.3% margin — thin
Weak financial health signals
Earnings declined 5.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : FAST
The strongest argument for FAST centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 15.6% and operating margin at 21.5%. Revenue growth of 15.5% demonstrates continued momentum.
Bull Case : WSO
The strongest argument for WSO centers on Altman Z-Score, Debt/Equity. PEG of 1.15 suggests the stock is reasonably priced for its growth.
Bear Case : FAST
The primary concerns for FAST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Bear Case : WSO
The primary concerns for WSO are P/E Ratio, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
FAST profiles as a growth stock while WSO is a value play — different risk/reward profiles.
WSO carries more volatility with a beta of 1.04 — expect wider price swings.
FAST is growing revenue faster at 15.5% — sustainability is the question.
FAST generates stronger free cash flow (348M), providing more financial flexibility.
Bottom Line
FAST scores higher overall (64/100 vs 56/100), backed by strong 15.6% margins and 15.5% 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.
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.
Visit Website →Watsco Inc
INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA
Watsco, Inc. distributes air conditioning, heating and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico and Puerto Rico. The company is headquartered in Miami, Florida.
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