DNOW
Dnow Inc.
Oil & Gas Equipment & Services
Market Cap$1.54B
5Y Perf.+75.4%
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Stock Comparison
DNOW vs AIT
Revenue, margins, valuation, and 5-year total return — side by side.
AIT
Applied Industrial Technologies, Inc.
Industrial - Distribution
Market Cap$11.47B
5Y Perf.+435.1%
DNOW vs AIT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | DNOW | AIT |
|---|---|---|
| Industry | Oil & Gas Equipment & Services | Industrial - Distribution |
| Market Cap | $1.54B | $11.47B |
| Revenue (TTM) | $3.40B | $4.84B |
| Net Income (TTM) | $-141M | $404M |
| Gross Margin | 15.6% | 30.0% |
| Operating Margin | -2.5% | 11.2% |
| Forward P/E | 20.7x | 29.0x |
| Total Debt | $669M | $572M |
| Cash & Equiv. | $164M | $388M |
DNOW vs AIT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
DNOW
AIT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Dnow Inc. (DNOW) | 100 | 175.4 | +75.4% |
| Applied Industrial … (AIT) | 100 | 535.1 | +435.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: DNOW vs AIT
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 profitability and margin quality and dividend income and shareholder returns. Dnow Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. This set spans 2 sectors — these stocks serve different portfolio roles, not just different price points.
DNOW
Dnow Inc.
The Income Pick
DNOW is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 1 yrs, beta 0.83
- Rev growth 18.8%, EPS growth -200.0%, 3Y rev CAGR 9.7%
- Lower volatility, beta 0.83, Low D/E 29.9%, current ratio 2.34x
Best for: income & stability and growth exposure
AIT
Applied Industrial Technologies, Inc.
The Long-Run Compounder
AIT carries the broadest edge in this set and is the clearest fit for long-term compounding.
- 6.3% 10Y total return vs DNOW's -22.8%
- 8.3% margin vs DNOW's -4.1%
- 0.5% yield; 15-year raise streak; the other pay no meaningful dividend
Best for: long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | DNOW | 18.8% revenue growth vs AIT's 1.9% |
| Value | DNOW | Lower P/E (20.7x vs 29.0x) |
| Quality / Margins | AIT | 8.3% margin vs DNOW's -4.1% |
| Stability / Safety | DNOW | Beta 0.83 vs AIT's 1.07, lower leverage |
| Dividends | AIT | 0.5% yield; 15-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | AIT | +44.6% vs DNOW's -10.8% |
| Efficiency (ROA) | AIT | 12.9% ROA vs DNOW's -5.0%, ROIC 18.7% vs -3.3% |
DNOW vs AIT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
DNOW vs AIT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLAITLAGGINGDNOW
DNOWDnow Inc.
1leads
AITApplied Industrial Te…
4leads
6 Total Categories
CATEGORYLEADERvs DNOWMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
AIT5/6
Valuation MetricsMultiples, price ratios, and targets
DNOW5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
AIT7/8
Total Returns1Y, 3Y, 5Y total returns with dividends
AIT6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
AIT1/1
Income & Cash Flow (Last 12 Months)
AIT leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
AIT and DNOW operate at a comparable scale, with $4.8B and $3.4B in trailing revenue. AIT is the more profitable business, keeping 8.3% of every revenue dollar as net income compared to DNOW's -4.1%. On growth, DNOW holds the edge at +97.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DNOWDnow Inc. | AITApplied Industria… |
|---|---|---|
| RevenueTrailing 12 months | $3.4B | $4.8B |
| EBITDAEarnings before interest/tax | -$44M | $592M |
| Net IncomeAfter-tax profit | -$141M | $404M |
| Free Cash FlowCash after capex | $53M | $437M |
| Gross MarginGross profit ÷ Revenue | +15.6% | +30.0% |
| Operating MarginEBIT ÷ Revenue | -2.5% | +11.2% |
| Net MarginNet income ÷ Revenue | -4.1% | +8.3% |
| FCF MarginFCF ÷ Revenue | +1.6% | +9.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +97.5% | +7.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.2% | +3.1% |
AIT leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
DNOW leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
| Metric | DNOWDnow Inc. | AITApplied Industria… |
|---|---|---|
| Market CapShares × price | $1.5B | $11.5B |
| Enterprise ValueMkt cap + debt − cash | $2.0B | $11.7B |
| Trailing P/EPrice ÷ TTM EPS | -17.43x | 30.67x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.66x | 29.00x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.41x |
| EV / EBITDAEnterprise value multiple | — | 20.85x |
| Price / SalesMarket cap ÷ Revenue | 0.55x | 2.51x |
| Price / BookPrice ÷ Book value/share | 0.69x | 6.53x |
| Price / FCFMarket cap ÷ FCF | 11.50x | 24.66x |
DNOW leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
AIT leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
AIT delivers a 21.6% return on equity — every $100 of shareholder capital generates $22 in annual profit, vs $-8 for DNOW. DNOW carries lower financial leverage with a 0.30x debt-to-equity ratio, signaling a more conservative balance sheet compared to AIT's 0.31x. On the Piotroski fundamental quality scale (0–9), AIT scores 6/9 vs DNOW's 3/9, reflecting solid financial health.
| Metric | DNOWDnow Inc. | AITApplied Industria… |
|---|---|---|
| ROE (TTM)Return on equity | -8.4% | +21.6% |
| ROA (TTM)Return on assets | -5.0% | +12.9% |
| ROICReturn on invested capital | -3.3% | +18.7% |
| ROCEReturn on capital employed | -3.9% | +19.5% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 6 |
| Debt / EquityFinancial leverage | 0.30x | 0.31x |
| Net DebtTotal debt minus cash | $505M | $184M |
| Cash & Equiv.Liquid assets | $164M | $388M |
| Total DebtShort + long-term debt | $669M | $572M |
| Interest CoverageEBIT ÷ Interest expense | — | 42.94x |
AIT leads this category, winning 7 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
AIT leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in AIT five years ago would be worth $30,484 today (with dividends reinvested), compared to $11,336 for DNOW. Over the past 12 months, AIT leads with a +44.6% total return vs DNOW's -10.8%. The 3-year compound annual growth rate (CAGR) favors AIT at 34.6% vs DNOW's 11.4% — a key indicator of consistent wealth creation.
| Metric | DNOWDnow Inc. | AITApplied Industria… |
|---|---|---|
| YTD ReturnYear-to-date | -2.2% | +19.7% |
| 1-Year ReturnPast 12 months | -10.8% | +44.6% |
| 3-Year ReturnCumulative with dividends | +38.3% | +143.8% |
| 5-Year ReturnCumulative with dividends | +13.4% | +204.8% |
| 10-Year ReturnCumulative with dividends | -22.8% | +627.9% |
| CAGR (3Y)Annualised 3-year return | +11.4% | +34.6% |
AIT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — DNOW and AIT each lead in 1 of 2 comparable metrics.
Risk & Volatility
DNOW is the less volatile stock with a 0.83 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. AIT currently trades 98.0% from its 52-week high vs DNOW's 75.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DNOWDnow Inc. | AITApplied Industria… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.83x | 1.07x |
| 52-Week HighHighest price in past year | $17.26 | $316.82 |
| 52-Week LowLowest price in past year | $10.94 | $213.78 |
| % of 52W HighCurrent price vs 52-week peak | +75.7% | +98.0% |
| RSI (14)Momentum oscillator 0–100 | 68.2 | 72.6 |
| Avg Volume (50D)Average daily shares traded | 3.2M | 285K |
Evenly matched — DNOW and AIT each lead in 1 of 2 comparable metrics.
Analyst Outlook
AIT leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates DNOW as "Buy" and AIT as "Buy". Consensus price targets imply 30.1% upside for DNOW (target: $17) vs 3.9% for AIT (target: $322). AIT is the only dividend payer here at 0.53% yield — a key consideration for income-focused portfolios.
| Metric | DNOWDnow Inc. | AITApplied Industria… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $17.00 | $322.33 |
| # AnalystsCovering analysts | 16 | 15 |
| Dividend YieldAnnual dividend ÷ price | — | +0.5% |
| Dividend StreakConsecutive years of raises | 1 | 15 |
| Dividend / ShareAnnual DPS | — | $1.64 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.4% | +1.3% |
AIT leads this category, winning 1 of 1 comparable metric.
Key Takeaway
AIT leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). DNOW leads in 1 (Valuation Metrics). 1 tied.
Best OverallApplied Industrial Technolo… (AIT)Leads 4 of 6 categories
Loading custom metrics...
DNOW vs AIT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is DNOW or AIT a better buy right now?
For growth investors, Dnow Inc.
(DNOW) is the stronger pick with 18. 8% revenue growth year-over-year, versus 1. 9% for Applied Industrial Technologies, Inc. (AIT). Applied Industrial Technologies, Inc. (AIT) offers the better valuation at 30. 7x trailing P/E (29. 0x forward), making it the more compelling value choice. Analysts rate Dnow Inc. (DNOW) a "Buy" — based on 16 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 — DNOW or AIT?
On forward P/E, Dnow Inc.
is actually cheaper at 20. 7x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — DNOW or AIT?
Over the past 5 years, Applied Industrial Technologies, Inc.
(AIT) delivered a total return of +204. 8%, compared to +13. 4% for Dnow Inc. (DNOW). Over 10 years, the gap is even starker: AIT returned +627. 9% versus DNOW's -22. 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 — DNOW or AIT?
By beta (market sensitivity over 5 years), Dnow Inc.
(DNOW) is the lower-risk stock at 0. 83β versus Applied Industrial Technologies, Inc. 's 1. 07β — meaning AIT is approximately 28% more volatile than DNOW relative to the S&P 500. On balance sheet safety, Dnow Inc. (DNOW) carries a lower debt/equity ratio of 30% versus 31% for Applied Industrial Technologies, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — DNOW or AIT?
By revenue growth (latest reported year), Dnow Inc.
(DNOW) is pulling ahead at 18. 8% versus 1. 9% for Applied Industrial Technologies, Inc. (AIT). On earnings-per-share growth, the picture is similar: Applied Industrial Technologies, Inc. grew EPS 3. 0% year-over-year, compared to -200. 0% for Dnow Inc.. Over a 3-year CAGR, DNOW leads at 9. 7% 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 — DNOW or AIT?
Applied Industrial Technologies, Inc.
(AIT) is the more profitable company, earning 8. 6% net margin versus -3. 2% for Dnow 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 -2. 9% for DNOW. At the gross margin level — before operating expenses — AIT leads at 30. 3%, 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 DNOW or AIT more undervalued right now?
On forward earnings alone, Dnow Inc.
(DNOW) trades at 20. 7x forward P/E versus 29. 0x for Applied Industrial Technologies, Inc. — 8. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DNOW: 30. 1% to $17. 00.
08Which pays a better dividend — DNOW or AIT?
In this comparison, AIT (0.
5% yield) pays a dividend. DNOW does not pay a meaningful dividend and should not be held primarily for income.
09Is DNOW or AIT 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, +627. 9% 10Y return). Both have compounded well over 10 years (AIT: +627. 9%, DNOW: -22. 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 DNOW and AIT?
These companies operate in different sectors (DNOW (Energy) and AIT (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: DNOW is a small-cap high-growth stock; AIT is a mid-cap quality compounder stock. AIT pays a dividend while DNOW 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.
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