WallStSmart

Fastenal Company (FAST)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 20% more annual revenue ($8.75B vs $7.28B). FAST leads profitability with a 15.4% profit margin vs 6.5%. WSO appears more attractively valued with a PEG of 1.35. FAST earns a higher WallStSmart Score of 62/100 (C+).

FAST

Buy

62

out of 100

Grade: C+

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

WSO

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 5.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FASTUndervalued (+52.9%)

Margin of Safety

+52.9%

Fair Value

$106.15

Current Price

$51.84

$54.31 discount

UndervaluedFair: $106.15Overvalued

Intrinsic value data unavailable for WSO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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%

WSO2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
4.7610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Areas to Watch

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

WSO4 concerns · Avg: 3.5/10
P/E RatioValuation
27.5x4/10

Moderate valuation

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : WSO

The strongest argument for WSO centers on Altman Z-Score, Debt/Equity. PEG of 1.35 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 42.7x leaves little room for execution misses.

Bear Case : WSO

The primary concerns for WSO are P/E Ratio, Revenue Growth, Profit Margin.

Key Dynamics to Monitor

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

WSO carries more volatility with a beta of 1.01 — 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 54/100), 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.

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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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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