Fastenal Company (FAST)vsWatsco Inc (WSO)
FAST
Fastenal Company
$45.37
+1.07%
INDUSTRIALS · Cap: $52.10B
WSO
Watsco Inc
$367.15
+1.01%
INDUSTRIALS · Cap: $14.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Fastenal Company generates 13% more annual revenue ($8.20B vs $7.24B). FAST leads profitability with a 15.3% profit margin vs 6.9%. WSO appears more attractively valued with a PEG of 1.48. FAST earns a higher WallStSmart Score of 58/100 (C).
FAST
Buy58
out of 100
Grade: C
WSO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-99.0%
Fair Value
$23.63
Current Price
$45.37
$21.74 premium
Margin of Safety
-413.3%
Fair Value
$83.30
Current Price
$367.15
$283.85 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 33 in profit
Large-cap with strong market position
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 13.2x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
6.9% margin — thin
Weak financial health signals
Revenue declined 10.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : WSO
The strongest argument for WSO centers on Altman Z-Score. PEG of 1.48 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 41.6x 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 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 11.1% — sustainability is the question.
WSO generates stronger free cash flow (389M), providing more financial flexibility.
Bottom Line
FAST scores higher overall (58/100 vs 45/100), backed by strong 15.3% margins and 11.1% revenue growth. Both earn "Buy" and "Hold" 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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