WallStSmart

Fastenal Company (FAST)vsMSC Industrial Direct Company Inc (MSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fastenal Company generates 115% more annual revenue ($8.20B vs $3.81B). FAST leads profitability with a 15.3% profit margin vs 5.4%. MSM appears more attractively valued with a PEG of 2.24. FAST earns a higher WallStSmart Score of 58/100 (C).

FAST

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 9.0Value: 4.7Quality: 7.8
Piotroski: 5/9

MSM

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 6.0Value: 8.0Quality: 6.3
Piotroski: 3/9Altman Z: 3.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FASTSignificantly Overvalued (-99.0%)

Margin of Safety

-99.0%

Fair Value

$23.63

Current Price

$45.37

$21.74 premium

UndervaluedFair: $23.63Overvalued
MSMFair Value (-0.8%)

Margin of Safety

-0.8%

Fair Value

$94.25

Current Price

$91.90

$2.35 premium

UndervaluedFair: $94.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FAST3 strengths · Avg: 9.3/10
Return on EquityProfitability
33.3%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$52.10B9/10

Large-cap with strong market position

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

MSM1 strengths · Avg: 10.0/10
Altman Z-ScoreHealth
3.1910/10

Safe zone — low bankruptcy risk

Areas to Watch

FAST3 concerns · Avg: 2.7/10
Price/BookValuation
13.2x4/10

Trading at 13.2x book value

PEG RatioValuation
3.162/10

Expensive relative to growth rate

P/E RatioValuation
41.6x2/10

Premium valuation, high expectations priced in

MSM4 concerns · Avg: 3.8/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

P/E RatioValuation
25.0x4/10

Moderate valuation

Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Profit MarginProfitability
5.4%3/10

5.4% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : FAST

The strongest argument for FAST centers on Return on Equity, Market Cap, Debt/Equity. Profitability is solid with margins at 15.3% and operating margin at 19.0%. Revenue growth of 11.1% demonstrates continued momentum.

Bull Case : MSM

The strongest argument for MSM centers on Altman Z-Score.

Bear Case : FAST

The primary concerns for FAST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 41.6x leaves little room for execution misses.

Bear Case : MSM

The primary concerns for MSM are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

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

FAST carries more volatility with a beta of 0.86 — expect wider price swings.

FAST is growing revenue faster at 11.1% — sustainability is the question.

FAST generates stronger free cash flow (308M), providing more financial flexibility.

Bottom Line

FAST scores higher overall (58/100 vs 51/100), backed by strong 15.3% margins and 11.1% 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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MSC Industrial Direct Company Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

MSC Industrial Direct Co., Inc., distributes metalworking and maintenance, repair and operations (MRO) products in the United States, Canada, Mexico, and the United Kingdom. The company is headquartered in Melville, New York.

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