DSGR vs FAST

For growth investors, Distribution Solutions Group, Inc.

(DSGR) is the stronger pick with 9. 8% revenue growth year-over-year, versus 8. 7% for Fastenal Company (FAST). Fastenal Company (FAST) offers the better valuation at 40. 7x trailing P/E (35. 9x forward), making it the more compelling value choice. Analysts rate Distribution Solutions Group, Inc. (DSGR) a "Buy" — based on 3 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, Fastenal Company (FAST) is the cheapest at 40.

7x versus Distribution Solutions Group, Inc. at 152. 7x. On forward P/E, Distribution Solutions Group, Inc. is actually cheaper at 26. 9x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Fastenal Company (FAST) delivered a total return of +81.

3%, compared to -0. 8% for Distribution Solutions Group, Inc. (DSGR). Over 10 years, the gap is even starker: FAST returned +338. 1% versus DSGR's +194. 0%. 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 Distribution Solutions Group, Inc. 's 1. 49β — meaning DSGR is approximately 115% 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 126% for Distribution Solutions Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Distribution Solutions Group, Inc.

(DSGR) is pulling ahead at 9. 8% versus 8. 7% for Fastenal Company (FAST). On earnings-per-share growth, the picture is similar: Distribution Solutions Group, Inc. grew EPS 212. 5% year-over-year, compared to 9. 0% for Fastenal Company. Over a 3-year CAGR, DSGR leads at 19. 8% 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 0. 4% for Distribution Solutions Group, 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 4. 4% for DSGR. 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.

On forward earnings alone, Distribution Solutions Group, Inc.

(DSGR) trades at 26. 9x forward P/E versus 35. 9x for Fastenal Company — 9. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DSGR: 49. 1% to $41. 00.

In this comparison, FAST (2.

0% yield) pays a dividend. DSGR 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%, DSGR: +194. 0%), 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.

FAST pays a dividend while DSGR 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.