AIT
Applied Industrial Technologies, Inc.
Industrial - Distribution
Market Cap$11.66B
5Y Perf.+443.8%
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Stock Comparison
AIT vs MSM
Revenue, margins, valuation, and 5-year total return — side by side.
MSM
MSC Industrial Direct Co., Inc.
Industrial - Distribution
Market Cap$5.86B
5Y Perf.+51.4%
AIT vs MSM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | AIT | MSM |
|---|---|---|
| Industry | Industrial - Distribution | Industrial - Distribution |
| Market Cap | $11.66B | $5.86B |
| Revenue (TTM) | $4.84B | $3.81B |
| Net Income (TTM) | $404M | $205M |
| Gross Margin | 30.0% | 40.7% |
| Operating Margin | 11.2% | 8.4% |
| Forward P/E | 29.5x | 24.1x |
| Total Debt | $572M | $539M |
| Cash & Equiv. | $388M | $56M |
AIT vs MSM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
AIT
MSM
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Applied Industrial … (AIT) | 100 | 543.8 | +443.8% |
| MSC Industrial Dire… (MSM) | 100 | 151.4 | +51.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: AIT vs MSM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: AIT leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. MSC Industrial Direct Co., Inc. is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
AIT
Applied Industrial Technologies, Inc.
The Growth Play
AIT carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 1.9%, EPS growth 3.0%, 3Y rev CAGR 6.2%
- 6.3% 10Y total return vs MSM's 87.8%
- Lower volatility, beta 1.07, Low D/E 31.0%, current ratio 3.32x
Best for: growth exposure and long-term compounding
MSM
MSC Industrial Direct Co., Inc.
The Income Pick
MSM is the clearest fit if your priority is income & stability and defensive.
- Dividend streak 4 yrs, beta 0.86, yield 3.2%
- Beta 0.86, yield 3.2%, current ratio 1.68x
- Lower P/E (24.1x vs 29.5x)
Best for: income & stability and defensive
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | AIT | 1.9% revenue growth vs MSM's -1.3% |
| Value | MSM | Lower P/E (24.1x vs 29.5x) |
| Quality / Margins | AIT | 8.3% margin vs MSM's 5.4% |
| Stability / Safety | MSM | Beta 0.86 vs AIT's 1.07 |
| Dividends | AIT | 0.5% yield, 15-year raise streak, vs MSM's 3.2% |
| Momentum (1Y) | MSM | +43.8% vs AIT's +43.8% |
| Efficiency (ROA) | AIT | 12.9% ROA vs MSM's 8.2%, ROIC 18.7% vs 12.3% |
AIT vs MSM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
AIT vs MSM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLAITLAGGINGMSM
MSMMSC Industrial Direct…
1leads
AITApplied Industrial Te…
3leads
6 Total Categories
CATEGORYLEADERvs MSMMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
AIT4/6
Valuation MetricsMultiples, price ratios, and targets
MSM6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
AIT8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
AIT4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
AIT leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
AIT and MSM operate at a comparable scale, with $4.8B and $3.8B in trailing revenue. Profitability is closely matched — net margins range from 8.3% (AIT) to 5.4% (MSM). On growth, AIT holds the edge at +7.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | AITApplied Industria… | MSMMSC Industrial Di… |
|---|---|---|
| RevenueTrailing 12 months | $4.8B | $3.8B |
| EBITDAEarnings before interest/tax | $592M | $414M |
| Net IncomeAfter-tax profit | $404M | $205M |
| Free Cash FlowCash after capex | $437M | $167M |
| Gross MarginGross profit ÷ Revenue | +30.0% | +40.7% |
| Operating MarginEBIT ÷ Revenue | +11.2% | +8.4% |
| Net MarginNet income ÷ Revenue | +8.3% | +5.4% |
| FCF MarginFCF ÷ Revenue | +9.0% | +4.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.3% | +4.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.1% | +12.0% |
AIT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
MSM leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 29.4x trailing earnings, MSM trades at a 6% valuation discount to AIT's 31.2x P/E. On an enterprise value basis, MSM's 15.7x EV/EBITDA is more attractive than AIT's 21.2x.
| Metric | AITApplied Industria… | MSMMSC Industrial Di… |
|---|---|---|
| Market CapShares × price | $11.7B | $5.9B |
| Enterprise ValueMkt cap + debt − cash | $11.8B | $6.3B |
| Trailing P/EPrice ÷ TTM EPS | 31.16x | 29.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 29.47x | 24.15x |
| PEG RatioP/E ÷ EPS growth rate | 0.42x | — |
| EV / EBITDAEnterprise value multiple | 21.18x | 15.70x |
| Price / SalesMarket cap ÷ Revenue | 2.55x | 1.55x |
| Price / BookPrice ÷ Book value/share | 6.64x | 4.20x |
| Price / FCFMarket cap ÷ FCF | 25.06x | 24.33x |
MSM leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
AIT leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
AIT delivers a 21.6% return on equity — every $100 of shareholder capital generates $22 in annual profit, vs $15 for MSM. AIT carries lower financial leverage with a 0.31x debt-to-equity ratio, signaling a more conservative balance sheet compared to MSM's 0.39x. On the Piotroski fundamental quality scale (0–9), AIT scores 6/9 vs MSM's 5/9, reflecting solid financial health.
| Metric | AITApplied Industria… | MSMMSC Industrial Di… |
|---|---|---|
| ROE (TTM)Return on equity | +21.6% | +14.8% |
| ROA (TTM)Return on assets | +12.9% | +8.2% |
| ROICReturn on invested capital | +18.7% | +12.3% |
| ROCEReturn on capital employed | +19.5% | +17.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.31x | 0.39x |
| Net DebtTotal debt minus cash | $184M | $483M |
| Cash & Equiv.Liquid assets | $388M | $56M |
| Total DebtShort + long-term debt | $572M | $539M |
| Interest CoverageEBIT ÷ Interest expense | 42.94x | 12.56x |
AIT leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
AIT leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in AIT five years ago would be worth $31,250 today (with dividends reinvested), compared to $12,940 for MSM. Over the past 12 months, MSM leads with a +43.8% total return vs AIT's +43.8%. The 3-year compound annual growth rate (CAGR) favors AIT at 35.3% vs MSM's 8.2% — a key indicator of consistent wealth creation.
| Metric | AITApplied Industria… | MSMMSC Industrial Di… |
|---|---|---|
| YTD ReturnYear-to-date | +21.7% | +24.4% |
| 1-Year ReturnPast 12 months | +43.8% | +43.8% |
| 3-Year ReturnCumulative with dividends | +147.7% | +26.7% |
| 5-Year ReturnCumulative with dividends | +212.5% | +29.4% |
| 10-Year ReturnCumulative with dividends | +631.2% | +87.8% |
| CAGR (3Y)Annualised 3-year return | +35.3% | +8.2% |
AIT leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — AIT and MSM each lead in 1 of 2 comparable metrics.
Risk & Volatility
MSM is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than AIT's 1.07 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | AITApplied Industria… | MSMMSC Industrial Di… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.07x | 0.86x |
| 52-Week HighHighest price in past year | $316.46 | $106.05 |
| 52-Week LowLowest price in past year | $213.78 | $74.30 |
| % of 52W HighCurrent price vs 52-week peak | +99.7% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 66.7 | 64.9 |
| Avg Volume (50D)Average daily shares traded | 285K | 598K |
Evenly matched — AIT and MSM each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — AIT and MSM each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates AIT as "Buy" and MSM as "Hold". Consensus price targets imply 2.2% upside for AIT (target: $322) vs -6.9% for MSM (target: $98). For income investors, MSM offers the higher dividend yield at 3.23% vs AIT's 0.52%.
| Metric | AITApplied Industria… | MSMMSC Industrial Di… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $322.33 | $97.75 |
| # AnalystsCovering analysts | 15 | 28 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +3.2% |
| Dividend StreakConsecutive years of raises | 15 | 4 |
| Dividend / ShareAnnual DPS | $1.64 | $3.39 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.3% | +0.7% |
Evenly matched — AIT and MSM each lead in 1 of 2 comparable metrics.
Key Takeaway
AIT leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). MSM leads in 1 (Valuation Metrics). 2 tied.
Best OverallApplied Industrial Technolo… (AIT)Leads 3 of 6 categories
Loading custom metrics...
AIT vs MSM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is AIT or MSM a better buy right now?
For growth investors, Applied Industrial Technologies, Inc.
(AIT) is the stronger pick with 1. 9% revenue growth year-over-year, versus -1. 3% for MSC Industrial Direct Co. , Inc. (MSM). MSC Industrial Direct Co. , Inc. (MSM) offers the better valuation at 29. 4x trailing P/E (24. 1x forward), making it the more compelling value choice. Analysts rate Applied Industrial Technologies, Inc. (AIT) a "Buy" — based on 15 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.
02Which has the better valuation — AIT or MSM?
On trailing P/E, MSC Industrial Direct Co.
, Inc. (MSM) is the cheapest at 29. 4x versus Applied Industrial Technologies, Inc. at 31. 2x. On forward P/E, MSC Industrial Direct Co. , Inc. is actually cheaper at 24. 1x.
03Which is the better long-term investment — AIT or MSM?
Over the past 5 years, Applied Industrial Technologies, Inc.
(AIT) delivered a total return of +212. 5%, compared to +29. 4% for MSC Industrial Direct Co. , Inc. (MSM). Over 10 years, the gap is even starker: AIT returned +631. 2% versus MSM's +87. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AIT or MSM?
By beta (market sensitivity over 5 years), MSC Industrial Direct Co.
, Inc. (MSM) is the lower-risk stock at 0. 86β versus Applied Industrial Technologies, Inc. 's 1. 07β — meaning AIT is approximately 25% more volatile than MSM relative to the S&P 500. On balance sheet safety, Applied Industrial Technologies, Inc. (AIT) carries a lower debt/equity ratio of 31% versus 39% for MSC Industrial Direct Co. , Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — AIT or MSM?
By revenue growth (latest reported year), Applied Industrial Technologies, Inc.
(AIT) is pulling ahead at 1. 9% versus -1. 3% for MSC Industrial Direct Co. , Inc. (MSM). On earnings-per-share growth, the picture is similar: Applied Industrial Technologies, Inc. grew EPS 3. 0% year-over-year, compared to -22. 1% for MSC Industrial Direct Co. , Inc.. Over a 3-year CAGR, AIT leads at 6. 2% 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.
06Which has better profit margins — AIT or MSM?
Applied Industrial Technologies, Inc.
(AIT) is the more profitable company, earning 8. 6% net margin versus 5. 3% for MSC Industrial Direct Co. , Inc. — meaning it keeps 8. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AIT leads at 10. 9% versus 8. 3% for MSM. At the gross margin level — before operating expenses — MSM leads at 40. 8%, 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.
07Is AIT or MSM more undervalued right now?
On forward earnings alone, MSC Industrial Direct Co.
, Inc. (MSM) trades at 24. 1x forward P/E versus 29. 5x for Applied Industrial Technologies, Inc. — 5. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AIT: 2. 2% to $322. 33.
08Which pays a better dividend — AIT or MSM?
All stocks in this comparison pay dividends.
MSC Industrial Direct Co. , Inc. (MSM) offers the highest yield at 3. 2%, versus 0. 5% for Applied Industrial Technologies, Inc. (AIT).
09Is AIT or MSM better for a retirement portfolio?
For long-horizon retirement investors, Applied Industrial Technologies, Inc.
(AIT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 07), 0. 5% yield, +631. 2% 10Y return). Both have compounded well over 10 years (AIT: +631. 2%, MSM: +87. 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.
10What are the main differences between AIT and MSM?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: AIT is a mid-cap quality compounder stock; MSM is a small-cap income-oriented stock. 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.
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Revenue Growth>
%
(AIT: 7.3% · MSM: 4.0%)Net Margin>
%
(AIT: 8.3% · MSM: 5.4%)P/E Ratio<
x
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