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AIT vs FAST
Which Stock Would AI Choose? Applied Industrial Technologies (AIT) vs. Fastenal (FAST) Stock Comparison
Key Takeaways
- Applied Industrial Technologies (AIT) and Fastenal (FAST) both operate in the industrial distribution sector but differ markedly in scale, margin profile, and market positioning.
- FAST commands a significantly larger market capitalization of approximately $54 billion compared to AIT's roughly $12 billion, reflecting Fastenal's broader customer base and longer operational history.
- Fastenal delivers superior profitability metrics, including a net margin near 15.4% and return on equity (ROE) above 33%, while AIT reports a net margin of approximately 8.3% and ROE around 21.6%.
- AIT has demonstrated stronger price momentum in recent months, with year-to-date gains exceeding 31%, compared to FAST's roughly 15% YTD advance.
- Fastenal offers a more attractive dividend yield of approximately 2.1% with 26 consecutive years of dividend growth, versus AIT's yield of about 0.6% and 16 years of increases.
- Both companies face similar macro headwinds from sluggish industrial production and tariff-related uncertainty, but AIT's Engineered Solutions segment has been a notable growth driver.
Introduction
Investors seeking exposure to the industrial distribution sector often weigh two prominent names: Applied Industrial Technologies (AIT), a value-added distributor specializing in motion, fluid power, and automation solutions, and Fastenal (FAST), a wholesale giant known for fasteners, safety supplies, and its extensive vending-machine network. While both companies serve maintenance, repair, and operations (MRO) and original equipment manufacturing (OEM) end markets, their business models, growth trajectories, and valuation profiles diverge considerably. This comparison is especially relevant for traders and investors evaluating relative positioning within the industrial supply chain at a time when manufacturing activity remains subdued and trade policy uncertainty persists.
AIT Overview and Recent Performance
Applied Industrial Technologies, headquartered in Cleveland, Ohio, operates across two primary segments: Service Center Based Distribution, which accounts for roughly 65% of revenue and provides bearings, power transmission products, and general industrial supplies; and Engineered Solutions, a higher-margin segment focused on fluid power systems, automation technologies, and specialized flow control. In its most recent fiscal year ended June 30, 2025, AIT reported net sales of $4.6 billion, a 1.9% increase year-over-year, with net income of $393 million and diluted earnings per share (EPS) of $10.12. The company has issued fiscal 2026 guidance calling for total sales growth of 4% to 7% and EPS between $10.00 and $10.75. In recent weeks, AIT shares have traded near the $336 level, reflecting a year-to-date gain exceeding 31%. This strong price performance has been supported by accelerating organic growth in the Engineered Solutions segment and contributions from strategic acquisitions. However, investors have also noted margin pressures tied to elevated input costs and a subdued demand backdrop in the Service Center segment, which remains sensitive to industrial production cycles.
FAST Overview and Recent Performance
Fastenal, based in Winona, Minnesota, is one of the largest industrial and construction supply distributors in North America, with a product portfolio spanning fasteners, safety supplies, and eight additional product categories including tools, janitorial supplies, and cutting tools. The company reported full-year 2025 net sales of $8.2 billion, an 8.7% increase from the prior year, powered by market share gains and successful execution of its key account strategy. In its most recent third quarter, Fastenal delivered net sales of $2.13 billion, representing 11.7% year-over-year growth, while operating margins expanded to 20.7% from 20.3% a year earlier. The company completed a two-for-one stock split in May 2025, and adjusted shares have traded in the $45 to $46 range in recent market activity. Fastenal's performance has been buoyed by robust customer contract signings, pricing actions, and growth across its digital footprint, including its industry-leading vending and bin programs. Despite sluggishness in broader industrial production—the U.S. Purchasing Managers' Index (PMI), a gauge of manufacturing sector health, averaged below 50 in recent quarters, indicating contraction—Fastenal has generated meaningful unit sales growth, a testament to its competitive positioning.
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Head-to-Head Comparison
While both companies operate in industrial distribution, the contrasts between AIT and FAST are instructive. Fastenal is substantially larger, with revenue nearly double AIT's and a market capitalization roughly four and a half times greater. This scale advantage translates into a higher net profit margin of 15.4% versus AIT's 8.3%, driven by operational efficiencies, its national footprint, and a deeply embedded vending ecosystem that locks in recurring customer relationships. Fastenal also boasts a return on equity above 33%, reflecting disciplined capital allocation over decades.
AIT, by contrast, presents a more growth-oriented profile. Its Engineered Solutions segment, which grew 13.5% in recent quarters, benefits from secular trends in automation, data center construction, and semiconductor manufacturing—areas where AIT's technical expertise provides a competitive moat. AIT's valuation appears more moderate on a trailing price-to-earnings (P/E) basis at approximately 29.9x versus Fastenal's 40.8x, though Fastenal commands a premium owing to its consistent margin profile and proven resilience through economic cycles.
On the income front, Fastenal is the clear leader, offering a dividend yield around 2.1% backed by 26 consecutive years of dividend growth. AIT's yield of approximately 0.6% and 16-year growth streak are respectable but notably lower. Risk factors for both include exposure to manufacturing cycles, trade policy uncertainty, and input cost inflation. AIT's heavier reliance on the more cyclical Service Center segment introduces additional variability, while Fastenal's scale and diversified product mix provide a degree of insulation. In terms of recent price momentum, AIT has outperformed, suggesting the market is rewarding its faster organic growth and acquisition-driven expansion.
Tickeron AI Verdict
Evaluating the relative positioning of AIT and FAST through the lens of observable trend data, momentum indicators, and fundamental stability, Tickeron's AI would likely express a nuanced view. Fastenal presents the stronger case on consistency and quality—higher margins, superior returns on equity, a longer dividend growth track record, and a resilient business model that has delivered double-digit sales growth even amid industrial contraction. These attributes tend to align well with AI strategies that prioritize trend stability and lower-volatility positioning. However, AIT's superior recent price momentum, lower relative valuation, and exposure to higher-growth verticals such as automation and data center infrastructure may appeal more to growth-oriented, momentum-based AI models. On balance, the AI would probably lean toward Fastenal for risk-adjusted, multi-month positioning given its demonstrated earnings consistency and defensive characteristics, while acknowledging that AIT's growth catalysts could generate stronger tactical upside during periods of improving industrial sentiment.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AIT is a StrongBuy and FAST is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AIT’s FA Score shows that 2 FA rating(s) are green whileFAST’s FA Score has 1 green FA rating(s).
- AIT’s FA Score: 2 green, 3 red.
- FAST’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AIT’s TA Score shows that 6 TA indicator(s) are bullish while FAST’s TA Score has 5 bullish TA indicator(s).
- AIT’s TA Score: 6 bullish, 3 bearish.
- FAST’s TA Score: 5 bullish, 4 bearish.
Price Growth
AIT (@Electronics Distributors) experienced а -0.53% price change this week, while FAST (@Electronics Distributors) price change was +2.02% for the same time period.
The average weekly price growth across all stocks in the @Electronics Distributors industry was -2.54%. For the same industry, the average monthly price growth was -3.18%, and the average quarterly price growth was +0.98%.
Reported Earning Dates
AIT is expected to report earnings on Aug 13, 2026.
FAST is expected to report earnings on Oct 14, 2026.
Industries' Descriptions
@Electronics Distributors (-2.54% weekly)Electronics distributors are companies that are involved in distribution of one or more of the following: electronic components, computer products/ peripherals and software products & services. Several electronics distributors are also becoming the point of contact for technical/pre- & post-sale support in many cases, in an attempt to bolster their position in the market. Tariffs and/or cross-border trade barriers are some of the potential threats to the electronics supply chain, but that could also potentially lead to re-directing to markets where tariffs/restrictions are lower depending on demand. The industry is also vulnerable in the event of economic slowdowns. Arrow Electronics, Inc., SYNNEX Corporation and Versum Materials, Inc. are some of the major electronics distributors in the U.S.
| AIT | FAST | AIT / FAST | |
| Capitalization | 12.8B | 54.7B | 23% |
| EBITDA | 612M | 1.96B | 31% |
| Gain YTD | 34.907 | 20.843 | 167% |
| P/E Ratio | 32.63 | 40.78 | 80% |
| Revenue | 4.84B | 8.75B | 55% |
| Total Cash | 172M | 205M | 84% |
| Total Debt | 365M | 442M | 83% |
AIT | FAST | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 34 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 7 | 62 | |
SMR RATING 1..100 | 44 | 30 | |
PRICE GROWTH RATING 1..100 | 41 | 36 | |
P/E GROWTH RATING 1..100 | 31 | 61 | |
SEASONALITY SCORE 1..100 | 50 | 45 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
FAST's Valuation (78) in the Wholesale Distributors industry is in the same range as AIT (83). This means that FAST’s stock grew similarly to AIT’s over the last 12 months.
AIT's Profit vs Risk Rating (7) in the Wholesale Distributors industry is somewhat better than the same rating for FAST (62). This means that AIT’s stock grew somewhat faster than FAST’s over the last 12 months.
FAST's SMR Rating (30) in the Wholesale Distributors industry is in the same range as AIT (44). This means that FAST’s stock grew similarly to AIT’s over the last 12 months.
FAST's Price Growth Rating (36) in the Wholesale Distributors industry is in the same range as AIT (41). This means that FAST’s stock grew similarly to AIT’s over the last 12 months.
AIT's P/E Growth Rating (31) in the Wholesale Distributors industry is in the same range as FAST (61). This means that AIT’s stock grew similarly to FAST’s over the last 12 months.
| AIT | FAST | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 49% | 3 days ago 63% |
| Stochastic ODDS (%) | 3 days ago 53% | 3 days ago 42% |
| Momentum ODDS (%) | 3 days ago 69% | 3 days ago 68% |
| MACD ODDS (%) | 3 days ago 69% | 3 days ago 63% |
| TrendWeek ODDS (%) | 3 days ago 51% | 3 days ago 64% |
| TrendMonth ODDS (%) | 3 days ago 66% | 3 days ago 60% |
| Advances ODDS (%) | 3 days ago 66% | 6 days ago 63% |
| Declines ODDS (%) | 5 days ago 48% | 4 days ago 49% |
| BollingerBands ODDS (%) | 3 days ago 75% | 3 days ago 40% |
| Aroon ODDS (%) | 3 days ago 63% | 3 days ago 52% |
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AIT and
Correlation & Price change
A.I.dvisor indicates that over the last year, AIT has been loosely correlated with WCC. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if AIT jumps, then WCC could also see price increases.
FAST and
Correlation & Price change
A.I.dvisor indicates that over the last year, FAST has been loosely correlated with MSM. These tickers have moved in lockstep 53% of the time. This A.I.-generated data suggests there is some statistical probability that if FAST jumps, then MSM could also see price increases.
| Ticker / NAME | Correlation To FAST | 1D Price Change % | ||
|---|---|---|---|---|
| FAST | 100% | +2.25% | ||
| MSM - FAST | 53% Loosely correlated | +1.60% | ||
| AIT - FAST | 47% Loosely correlated | +1.58% | ||
| WSO - FAST | 42% Loosely correlated | -0.46% | ||
| BXC - FAST | 40% Loosely correlated | +1.42% | ||
| QXO - FAST | 38% Loosely correlated | -1.19% | ||
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