Fastenal (NASDAQ:FAST) and TITAN Cem Co S/ADR (OTCMKTS:TITCY) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
85.2% of Fastenal shares are owned by institutional investors. 0.6% of Fastenal shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current recommendations for Fastenal and TITAN Cem Co S/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TITAN Cem Co S/ADR||0||0||0||0||N/A|
Fastenal presently has a consensus price target of $56.20, suggesting a potential downside of 1.92%. Given Fastenal’s higher possible upside, analysts clearly believe Fastenal is more favorable than TITAN Cem Co S/ADR.
Fastenal pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. TITAN Cem Co S/ADR pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Fastenal pays out 82.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fastenal has raised its dividend for 7 consecutive years. Fastenal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Fastenal and TITAN Cem Co S/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TITAN Cem Co S/ADR||3.68%||3.95%||2.04%|
Valuation & Earnings
This table compares Fastenal and TITAN Cem Co S/ADR’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fastenal||$4.39 billion||3.75||$578.60 million||$1.93||29.69|
|TITAN Cem Co S/ADR||$1.70 billion||1.10||$48.24 million||N/A||N/A|
Fastenal has higher revenue and earnings than TITAN Cem Co S/ADR.
Volatility and Risk
Fastenal has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, TITAN Cem Co S/ADR has a beta of -0.23, meaning that its stock price is 123% less volatile than the S&P 500.
Fastenal beats TITAN Cem Co S/ADR on 14 of the 15 factors compared between the two stocks.
Fastenal Company Profile
Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, and internationally. It offers fasteners, and other industrial and construction supplies under the Fastenal name. The company's fastener products include threaded fasteners, such as bolts, nuts, screws, studs, and related washers, which 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 various pins and 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; and non-residential construction market, which includes general, electrical, plumbing, sheet metal, and road contractors. It also serves 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. As of December 31, 2017, the company distributed its products through a network of 2,383 company owned stores. Fastenal Company was founded in 1967 and is headquartered in Winona, Minnesota.
TITAN Cem Co S/ADR Company Profile
Titan Cement Company S.A. engages in the production, trade, and distribution of construction materials primarily in Greece, the Balkans, Egypt, Turkey, the United States, and Brazil. The company offers cement and cementitious materials, ready-mix concrete, cement blocks, dry mortars, and fly ash, as well as aggregates, such as sand, gravel, crushed stone, and recycled concrete for use in construction applications. It is also involved in the shipping, trading, and port activities; production and trade of electricity; import and distribution of cement; ownership/development of real estate properties; and provision of financial, real estate brokerage, insurance, and transportation services. In addition, the company engages in processing alternative fuels; renting and leasing machines, equipment, and material goods; and the provision of engineering design services for solid and liquid waste facilities. Titan Cement Company S.A. was founded in 1902 and is headquartered in Athens, Greece.
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