Fastenal Company (FAST) vs Ferguson plc (FERG)

Fastenal Company and Ferguson plc are both Industrial Distribution companies. Fastenal Company is the larger, with a market value of $58.1B against $42.6B — 1.4× the size. Fastenal Company trades at the lower P/E: 42.7× against 50.7×. Fastenal Company grew revenue faster over the last twelve months: 12.5% against 9.38%. Fastenal Company has the higher net margin (15.5% vs 7.15%) and the higher return on invested capital (27.9% vs 18.8%). Both pay a dividend; Fastenal Company yields more (2.22% vs 1.54%). Across the 23 metrics below, Fastenal Company leads on 19 and Ferguson plc on 4.

Valuation

Metric FAST FERG Industrial Distribution median
P/E 42.74 50.66 28.81
P/S 6.61 13.12 1.10
P/B 14.22 69.58 3.59
Price to free cash flow 49.52 341.07 22.50
EV/EBITDA 29.56 121.53 15.13
EV/Sales 6.60 13.25 1.31
Earnings yield 2.34% 1.97% 3.16%
Free cash flow yield 2.02% 0.29% 3.85%

Profitability

Metric FAST FERG Industrial Distribution median
Gross margin 44.70% 31.10% 30.34%
Operating margin 20.29% 9.73% 8.06%
Net margin 15.45% 7.15% 4.95%
Free cash flow margin 13.36% 3.85% 4.67%
Return on equity 34.33% 40.09% 14.29%
Return on assets 26.23% 12.69% 5.30%
Return on invested capital 27.85% 18.75% 8.13%

Growth

Metric FAST FERG Industrial Distribution median
Revenue growth (TTM) 12.54% 9.38% 7.80%
EPS growth (last fiscal year) 9.00% 9.28% —
Revenue growth, 5-year CAGR 7.75% 9.06% 9.01%
Net income growth, 5-year CAGR 7.93% 14.07% 0.99%

Health

Metric FAST FERG Industrial Distribution median
Debt to equity 0.03 0.79 0.53
Current ratio 4.18 1.73 2.47
Net debt to EBITDA (0.08) 1.17 1.17

Dividend

Metric FAST FERG Industrial Distribution median
Dividend yield 2.22% 1.54% 1.54%
Payout ratio 0.67 0.46 0.00

Size

Metric FAST FERG Industrial Distribution median
Market cap 58.09b 42.59b 5.60b

Compare with another peer

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