CNM vs FAST

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

7% revenue growth year-over-year, versus 2. 8% for Core & Main, Inc. (CNM). Core & Main, Inc. (CNM) offers the better valuation at 16. 7x trailing P/E (21. 7x forward), making it the more compelling value choice. Analysts rate Core & Main, Inc. (CNM) a "Buy" — based on 14 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, Core & Main, Inc.

(CNM) is the cheapest at 16. 7x versus Fastenal Company at 40. 7x. On forward P/E, Core & Main, Inc. is actually cheaper at 21. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Core & Main, Inc. wins at 0. 27x versus Fastenal Company's 4. 62x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Core & Main, Inc.

(CNM) delivered a total return of +148. 4%, compared to +81. 3% for Fastenal Company (FAST). Over 10 years, the gap is even starker: FAST returned +338. 1% versus CNM's +148. 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.

69β versus Core & Main, Inc. 's 1. 12β — meaning CNM is approximately 62% 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 118% for Core & Main, 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 2. 8% for Core & Main, Inc. (CNM). On earnings-per-share growth, the picture is similar: Core & Main, Inc. grew EPS 39. 4% year-over-year, compared to 9. 0% for Fastenal Company. Over a 3-year CAGR, FAST leads at 5. 5% 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 5. 8% for Core & Main, 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 9. 4% for CNM. 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, Core & Main, Inc. (CNM) is the more undervalued stock at a PEG of 0. 27x versus Fastenal Company's 4. 62x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Core & Main, Inc. (CNM) trades at 21. 7x forward P/E versus 35. 9x for Fastenal Company — 14. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CNM: 28. 8% to $64. 00.

In this comparison, FAST (2.

0% yield) pays a dividend. CNM does not pay a meaningful dividend and should not be held primarily for income.

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.

69), 2. 0% yield, +338. 1% 10Y return). Both have compounded well over 10 years (FAST: +338. 1%, CNM: +148. 4%), 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.

In terms of investment character: CNM is a small-cap deep-value stock; FAST is a mid-cap quality compounder stock. FAST pays a dividend while CNM does not, making them suitable for different income and tax situations. 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.