GWW vs FAST

For growth investors, Fastenal Company (FAST) is the stronger pick with 8.

7% revenue growth year-over-year, versus 4. 5% for W. W. Grainger, Inc. (GWW). W. W. Grainger, Inc. (GWW) offers the better valuation at 34. 9x trailing P/E (27. 7x forward), making it the more compelling value choice. Analysts rate W. W. Grainger, Inc. (GWW) a "Hold" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, W.

W. Grainger, Inc. (GWW) is the cheapest at 34. 9x versus Fastenal Company at 40. 5x. On forward P/E, W. W. Grainger, Inc. is actually cheaper at 27. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: W. W. Grainger, Inc. wins at 1. 24x versus Fastenal Company's 4. 59x — a reasonable growth-adjusted valuation.

Over the past 5 years, W.

W. Grainger, Inc. (GWW) delivered a total return of +167. 8%, compared to +78. 9% for Fastenal Company (FAST). Over 10 years, the gap is even starker: GWW returned +462. 8% versus FAST's +336. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Fastenal Company (FAST) is the lower-risk stock at 0.

65β versus W. W. Grainger, Inc. 's 0. 87β — meaning GWW is approximately 34% more volatile than FAST relative to the S&P 500. On balance sheet safety, Fastenal Company (FAST) carries a lower debt/equity ratio of 11% versus 76% for W. W. Grainger, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Fastenal Company (FAST) is pulling ahead at 8.

7% versus 4. 5% for W. W. Grainger, Inc. (GWW). On earnings-per-share growth, the picture is similar: Fastenal Company grew EPS 9. 0% year-over-year, compared to -8. 6% for W. W. Grainger, Inc.. Over a 3-year CAGR, GWW leads at 5. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Fastenal Company (FAST) is the more profitable company, earning 15.

3% net margin versus 9. 5% for W. W. Grainger, Inc. — meaning it keeps 15. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FAST leads at 20. 2% versus 15. 0% for GWW. At the gross margin level — before operating expenses — FAST leads at 45. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, W. W. Grainger, Inc. (GWW) is the more undervalued stock at a PEG of 1. 24x versus Fastenal Company's 4. 59x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, W. W. Grainger, Inc. (GWW) trades at 27. 7x forward P/E versus 35. 7x for Fastenal Company — 8. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FAST: 5. 4% to $46. 57.

All stocks in this comparison pay dividends.

Fastenal Company (FAST) offers the highest yield at 2. 0%, versus 0. 8% for W. W. Grainger, Inc. (GWW).

For long-horizon retirement investors, Fastenal Company (FAST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

65), 2. 0% yield, +336. 4% 10Y return). Both have compounded well over 10 years (FAST: +336. 4%, GWW: +462. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.