FAST vs. ITW: A Head-to-Head Stock Comparison
Here’s a clear look at FAST and ITW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | FAST | ITW |
|---|---|---|
| Company Name | Fastenal Company | Illinois Tool Works Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Trading Companies & Distributors | Machinery |
| GICS Sub-Industry | Trading Companies & Distributors | Industrial Machinery & Supplies & Components |
| Market Capitalization | 49.71 billion USD | 72.53 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | August 20, 1987 | March 13, 1973 |
| Security Type | Common Stock | Common Stock |
FAST’s market capitalization stands at 49.71 billion USD, while ITW’s is 72.53 billion USD, indicating their market valuations are broadly comparable.
Historical Performance
This chart compares the performance of FAST and ITW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | FAST | ITW |
|---|---|---|
| 5-Day Price Return | -2.32% | -0.97% |
| 13-Week Price Return | -9.28% | -14.13% |
| 26-Week Price Return | 5.51% | 3.69% |
| 52-Week Price Return | 10.18% | 3.95% |
| Month-to-Date Return | -3.63% | -2.29% |
| Year-to-Date Return | 7.90% | 2.35% |
| 10-Day Avg. Volume | 7.13M | 1.53M |
| 3-Month Avg. Volume | 8.31M | 1.41M |
| 3-Month Volatility | 28.62% | 21.75% |
| Beta | 0.74 | 1.06 |
With betas of 0.74 for FAST and 1.06 for ITW, both stocks show similar sensitivity to overall market movements.
Profitability
Return on Equity (TTM)
FAST
33.25%
Trading Companies & Distributors Industry
- Max
- 29.90%
- Q3
- 18.67%
- Median
- 12.69%
- Q1
- 10.12%
- Min
- 0.06%
FAST’s Return on Equity of 33.25% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
ITW
97.39%
Machinery Industry
- Max
- 34.97%
- Q3
- 18.94%
- Median
- 12.32%
- Q1
- 8.02%
- Min
- -3.34%
ITW’s Return on Equity of 97.39% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
FAST
15.39%
Trading Companies & Distributors Industry
- Max
- 15.39%
- Q3
- 8.41%
- Median
- 5.42%
- Q1
- 3.10%
- Min
- -4.08%
A Net Profit Margin of 15.39% places FAST in the upper quartile for the Trading Companies & Distributors industry, signifying strong profitability and more effective cost management than most of its peers.
ITW
19.32%
Machinery Industry
- Max
- 18.62%
- Q3
- 10.76%
- Median
- 7.60%
- Q1
- 5.41%
- Min
- -0.45%
ITW’s Net Profit Margin of 19.32% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
FAST
20.25%
Trading Companies & Distributors Industry
- Max
- 20.25%
- Q3
- 10.84%
- Median
- 6.31%
- Q1
- 4.44%
- Min
- -4.31%
An Operating Profit Margin of 20.25% places FAST in the upper quartile for the Trading Companies & Distributors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
ITW
26.42%
Machinery Industry
- Max
- 27.51%
- Q3
- 15.96%
- Median
- 11.27%
- Q1
- 8.23%
- Min
- 0.58%
An Operating Profit Margin of 26.42% places ITW in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | FAST | ITW |
|---|---|---|
| Return on Equity (TTM) | 33.25% | 97.39% |
| Return on Assets (TTM) | 25.49% | 19.41% |
| Net Profit Margin (TTM) | 15.39% | 19.32% |
| Operating Profit Margin (TTM) | 20.25% | 26.42% |
| Gross Profit Margin (TTM) | 44.89% | 44.12% |
Financial Strength
Current Ratio (MRQ)
FAST
4.39
Trading Companies & Distributors Industry
- Max
- 3.68
- Q3
- 2.34
- Median
- 1.73
- Q1
- 1.40
- Min
- 0.39
FAST’s Current Ratio of 4.39 is exceptionally high, placing it well outside the typical range for the Trading Companies & Distributors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
ITW
1.19
Machinery Industry
- Max
- 3.67
- Q3
- 2.29
- Median
- 1.76
- Q1
- 1.34
- Min
- 0.71
ITW’s Current Ratio of 1.19 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
FAST
0.03
Trading Companies & Distributors Industry
- Max
- 1.66
- Q3
- 1.02
- Median
- 0.69
- Q1
- 0.43
- Min
- 0.00
Falling into the lower quartile for the Trading Companies & Distributors industry, FAST’s Debt-to-Equity Ratio of 0.03 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
ITW
2.83
Machinery Industry
- Max
- 1.31
- Q3
- 0.68
- Median
- 0.41
- Q1
- 0.23
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.83, ITW operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
FAST
2,365.29
Trading Companies & Distributors Industry
- Max
- 20.82
- Q3
- 13.25
- Median
- 5.70
- Q1
- 2.01
- Min
- -13.29
With an Interest Coverage Ratio of 2,365.29, FAST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.
ITW
14.82
Machinery Industry
- Max
- 87.64
- Q3
- 39.69
- Median
- 14.12
- Q1
- 6.30
- Min
- -0.40
ITW’s Interest Coverage Ratio of 14.82 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | FAST | ITW |
|---|---|---|
| Current Ratio (MRQ) | 4.39 | 1.19 |
| Quick Ratio (MRQ) | 2.32 | 0.79 |
| Debt-to-Equity Ratio (MRQ) | 0.03 | 2.83 |
| Interest Coverage Ratio (TTM) | 2,365.29 | 14.82 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | FAST | ITW |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 12.37% | 4.61% |
| Revenue Growth (TTM vs Prior YoY) | 10.94% | 2.90% |
| 3-Year Revenue CAGR | 5.52% | 0.23% |
| 5-Year Revenue CAGR | 7.75% | 4.99% |
EPS Growth
EPS Growth at a Glance
| Symbol | FAST | ITW |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 13.63% | 11.76% |
| EPS Growth (TTM vs Prior YoY) | 12.69% | -5.20% |
| 3-Year EPS CAGR | 5.03% | 2.45% |
| 5-Year EPS CAGR | 7.96% | 9.60% |
Dividend
Dividend Yield (TTM)
FAST
2.09%
Trading Companies & Distributors Industry
- Max
- 4.41%
- Q3
- 2.73%
- Median
- 1.81%
- Q1
- 0.88%
- Min
- 0.00%
FAST’s Dividend Yield of 2.09% is consistent with its peers in the Trading Companies & Distributors industry, providing a dividend return that is standard for its sector.
ITW
2.44%
Machinery Industry
- Max
- 4.20%
- Q3
- 2.35%
- Median
- 1.62%
- Q1
- 0.95%
- Min
- 0.00%
With a Dividend Yield of 2.44%, ITW offers a more attractive income stream than most of its peers in the Machinery industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
FAST
79.49%
Trading Companies & Distributors Industry
- Max
- 95.33%
- Q3
- 65.68%
- Median
- 52.95%
- Q1
- 26.21%
- Min
- 0.00%
FAST’s Dividend Payout Ratio of 79.49% is in the upper quartile for the Trading Companies & Distributors industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
ITW
58.22%
Machinery Industry
- Max
- 194.44%
- Q3
- 100.13%
- Median
- 56.03%
- Q1
- 28.95%
- Min
- 0.00%
ITW’s Dividend Payout Ratio of 58.22% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | FAST | ITW |
|---|---|---|
| Dividend Yield (TTM) | 2.09% | 2.44% |
| Dividend Payout Ratio (TTM) | 79.49% | 58.22% |
Valuation
Price-to-Earnings Ratio (TTM)
FAST
38.04
Trading Companies & Distributors Industry
- Max
- 43.94
- Q3
- 28.12
- Median
- 19.72
- Q1
- 17.28
- Min
- 6.67
A P/E Ratio of 38.04 places FAST in the upper quartile for the Trading Companies & Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
ITW
23.31
Machinery Industry
- Max
- 50.99
- Q3
- 32.65
- Median
- 27.25
- Q1
- 19.28
- Min
- 9.15
ITW’s P/E Ratio of 23.31 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
FAST
5.86
Trading Companies & Distributors Industry
- Max
- 4.03
- Q3
- 2.65
- Median
- 1.15
- Q1
- 0.72
- Min
- 0.14
With a P/S Ratio of 5.86, FAST trades at a valuation that eclipses even the highest in the Trading Companies & Distributors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
ITW
4.50
Machinery Industry
- Max
- 6.12
- Q3
- 3.29
- Median
- 2.05
- Q1
- 1.23
- Min
- 0.30
ITW’s P/S Ratio of 4.50 is in the upper echelon for the Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
FAST
13.35
Trading Companies & Distributors Industry
- Max
- 7.43
- Q3
- 4.02
- Median
- 2.23
- Q1
- 1.58
- Min
- 0.73
At 13.35, FAST’s P/B Ratio is at an extreme premium to the Trading Companies & Distributors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
ITW
23.22
Machinery Industry
- Max
- 8.68
- Q3
- 4.49
- Median
- 2.79
- Q1
- 1.54
- Min
- 0.70
At 23.22, ITW’s P/B Ratio is at an extreme premium to the Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | FAST | ITW |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 38.04 | 23.31 |
| Price-to-Sales Ratio (TTM) | 5.86 | 4.50 |
| Price-to-Book Ratio (MRQ) | 13.35 | 23.22 |
| Price-to-Free Cash Flow Ratio (TTM) | 42.49 | 26.98 |