ZKH Group (NYSE:ZKH – Get Free Report) and Fastenal (NASDAQ:FAST – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares ZKH Group and Fastenal’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ZKH Group | N/A | N/A | N/A |
Fastenal | 15.68% | 33.98% | 25.49% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for ZKH Group and Fastenal, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ZKH Group | 0 | 0 | 1 | 0 | 3.00 |
Fastenal | 0 | 4 | 1 | 0 | 2.20 |
Institutional and Insider Ownership
9.5% of ZKH Group shares are held by institutional investors. Comparatively, 81.4% of Fastenal shares are held by institutional investors. 0.4% of Fastenal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares ZKH Group and Fastenal’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
ZKH Group | $8.72 billion | 0.18 | -$42.86 million | N/A | N/A |
Fastenal | $7.35 billion | 5.31 | $1.16 billion | $2.02 | 33.75 |
Fastenal has lower revenue, but higher earnings than ZKH Group.
Summary
Fastenal beats ZKH Group on 7 of the 10 factors compared between the two stocks.
About ZKH Group
ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China. The company also provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. Further, it engages in the production and sale of intelligent warehousing equipment. The company was founded in 1998 and is based in Shanghai, the People's Republic of China.
About Fastenal
Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, North America, and internationally. It offers fasteners, and related industrial and construction supplies under the Fastenal name. The company's fastener products include threaded fasteners, bolts, nuts, screws, studs, and related washers that are used in manufactured products and construction projects, as well as in the maintenance and repair of machines. It also offers miscellaneous supplies and hardware, including pins, machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories. The company serves the manufacturing market comprising original equipment manufacturers; maintenance, repair, and operations customers; non-residential construction market; farmers, truckers, railroads, mining companies, schools, and retail trades; and oil exploration, production, and refinement companies, as well as federal, state, and local governmental entities. Fastenal Company was founded in 1967 and is headquartered in Winona, Minnesota.
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