Applied Industrial Technologies, Inc. (AIT) vs Fastenal Company (FAST)

Applied Industrial Technologies, Inc. and Fastenal Company are both Industrial Distribution companies. Fastenal Company is the larger, with a market value of $58.1B against $12.2B — 4.8× the size. Applied Industrial Technologies, Inc. trades at the lower P/E: 30.1× against 42.7×. Fastenal Company grew revenue faster over the last twelve months: 12.5% against 8.84%. Fastenal Company has the higher net margin (15.5% vs 8.35%) and the higher return on invested capital (27.9% vs 17.2%). Both pay a dividend; Fastenal Company yields more (2.22% vs 0.78%). Across the 23 metrics below, Fastenal Company leads on 13 and Applied Industrial Technologies, Inc. on 10.

Valuation

Metric AIT FAST Industrial Distribution median
P/E 30.08 42.74 28.81
P/S 2.51 6.61 1.10
P/B 6.70 14.22 3.59
Price to free cash flow 27.03 49.52 22.50
EV/EBITDA 20.34 29.56 15.13
EV/Sales 2.54 6.60 1.31
Earnings yield 3.32% 2.34% 3.16%
Free cash flow yield 3.70% 2.02% 3.85%

Profitability

Metric AIT FAST Industrial Distribution median
Gross margin 30.34% 44.70% 30.34%
Operating margin 11.06% 20.29% 8.06%
Net margin 8.35% 15.45% 4.95%
Free cash flow margin 9.29% 13.36% 4.67%
Return on equity 22.37% 34.33% 14.29%
Return on assets 13.40% 26.23% 5.30%
Return on invested capital 17.20% 27.85% 8.13%

Growth

Metric AIT FAST Industrial Distribution median
Revenue growth (TTM) 8.84% 12.54% 7.80%
EPS growth (last fiscal year) 8.20% 9.00% —
Revenue growth, 5-year CAGR 8.95% 7.75% 9.01%
Net income growth, 5-year CAGR 23.42% 7.93% 0.99%

Health

Metric AIT FAST Industrial Distribution median
Debt to equity 0.14 0.03 0.53
Current ratio 2.58 4.18 2.47
Net debt to EBITDA 0.22 (0.08) 1.17

Dividend

Metric AIT FAST Industrial Distribution median
Dividend yield 0.78% 2.22% 1.54%
Payout ratio 0.16 0.67 0.00

Size

Metric AIT FAST Industrial Distribution median
Market cap 12.20b 58.09b 5.60b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack