Head-To-Head Analysis: Fastenal (NASDAQ:FAST) and Jewett-Cameron Trading (NASDAQ:JCTC)

Fastenal (NASDAQ:FAST) and Jewett-Cameron Trading (NASDAQ:JCTC) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

81.4% of Fastenal shares are owned by institutional investors. Comparatively, 26.1% of Jewett-Cameron Trading shares are owned by institutional investors. 0.4% of Fastenal shares are owned by company insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Fastenal has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Profitability

This table compares Fastenal and Jewett-Cameron Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fastenal	15.30%	32.33%	24.62%
Jewett-Cameron Trading	-4.72%	-8.59%	-7.63%

Valuation & Earnings

This table compares Fastenal and Jewett-Cameron Trading”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fastenal	$7.77 billion	6.66	$1.15 billion	$1.04	43.39
Jewett-Cameron Trading	$47.15 million	0.26	$720,000.00	($0.36)	-9.81

Fastenal has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than Fastenal, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Fastenal and Jewett-Cameron Trading, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fastenal	1	8	3	0	2.17
Jewett-Cameron Trading	0	0	0	0	0.00

Fastenal presently has a consensus target price of $45.64, suggesting a potential upside of 1.12%. Given Fastenal’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Fastenal is more favorable than Jewett-Cameron Trading.

Summary

Fastenal beats Jewett-Cameron Trading on 13 of the 14 factors compared between the two stocks.

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.

About Jewett-Cameron Trading

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.