WallStSmart

Fastenal Company (FAST)vsFederal Signal Corporation (FSS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 257% more annual revenue ($8.75B vs $2.45B). FAST leads profitability with a 15.4% profit margin vs 11.7%. FSS appears more attractively valued with a PEG of 1.92. FSS earns a higher WallStSmart Score of 64/100 (C+).

FAST

Buy

62

out of 100

Grade: C+

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

FSS

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 5.0Quality: 7.5
Piotroski: 3/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FASTUndervalued (+52.9%)

Margin of Safety

+52.9%

Fair Value

$106.15

Current Price

$50.80

$55.35 discount

UndervaluedFair: $106.15Overvalued

Intrinsic value data unavailable for FSS.

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%

FSS3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
20.7%8/10

Earnings expanding 20.7% YoY

Areas to Watch

FAST3 concerns · Avg: 2.7/10
Price/BookValuation
14.3x4/10

Trading at 14.3x book value

PEG RatioValuation
3.452/10

Expensive relative to growth rate

P/E RatioValuation
42.7x2/10

Premium valuation, high expectations priced in

FSS3 concerns · Avg: 3.7/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

Moderate valuation

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 : FSS

The strongest argument for FSS centers on Altman Z-Score, Revenue Growth, EPS Growth. Revenue growth of 18.7% demonstrates continued momentum.

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 : FSS

The primary concerns for FSS are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

FAST profiles as a mature stock while FSS is a growth play — different risk/reward profiles.

FSS carries more volatility with a beta of 1.23 — expect wider price swings.

FSS is growing revenue faster at 18.7% — sustainability is the question.

FSS generates stronger free cash flow (95M), providing more financial flexibility.

Bottom Line

FSS scores higher overall (64/100 vs 62/100) and 18.7% revenue growth. FAST offers better value entry with a 52.9% margin of safety. 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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Federal Signal Corporation

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

Federal Signal Corporation designs, manufactures, and supplies a suite of integrated products and solutions for municipal, government, industrial, and commercial customers in the United States, Canada, Europe, and internationally. The company is headquartered in Oak Brook, Illinois.

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