FAST vs FERG: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: FERG is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FAST and FERG share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FAST and FERG exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Fastenal is a leading industrial distributor that supplies fasteners (bolts, nuts, screws) and a broad range of maintenance, repair, and operations (MRO) products such as tools, safety equipment, cutting tools, fluids, and janitorial supplies to manufacturers, construction firms, and other businesses. While fasteners are its heritage and namesake, the company today derives a majority of revenue from non-fastener industrial and MRO products. Fastenal's competitive edge comes from being physically close to its customers: it operates thousands of branches and, increasingly, on-site locations placed directly inside customers' facilities, plus a fast-growing network of industrial vending machines that dispense supplies right on the shop floor. This high-touch, high-service model creates sticky relationships and recurring revenue, since customers rely on Fastenal to keep production lines stocked. The company makes money on the markup between what it pays suppliers and what it charges customers, with vending, on-site programs, and e-commerce deepening those relationships. Fastenal is headquartered in Winona, Minnesota, and is a member of the S&P 500.

Full FAST guide

Ferguson sells the products that go inside buildings: pipe, valves, fittings, water heaters, HVAC equipment, fixtures, waterworks materials and industrial MRO supplies. It buys from thousands of manufacturers and resells through a North American network of roughly 1,700 branches, distribution centers and counter locations, supported by e-commerce and a large outside sales force. Customers are mostly trade professionals (plumbing and mechanical contractors, HVAC installers, municipalities, industrial plants and homebuilders) rather than consumers, and roughly all of the revenue is generated in the United States with a smaller Canadian business. Revenue is about ~$31.5B on a trailing twelve month basis against a market capitalization near ~$47.4B.

Full FERG guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• FAST drivers: On-site and vending growth; Sticky distribution model.
• FERG drivers: Non-residential and large capital projects; Bolt-on acquisitions in a fragmented market.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Fastenal's revenue is closely tied to industrial production, manufacturing activity, and the broader economy, so recessions or manufacturing slowdowns directly pressure sales and same-store growth. For FERG, ferguson's revenue is tied to construction and repair activity, which is cyclical and rate-sensitive, and US residential demand has been weak through 2026 with no confirmed inflection.

Pick FAST if you believe its drivers more; FERG if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FAST and FERG guides.

FAST. Fastenal trades at a premium multiple for an industrial distributor, reflecting its consistent execution, high returns on capital, sticky on-site and vending model, and reliable dividend growth. The market pays up for the quality and recurring nature of its revenue, which makes the valuation sensitive to any slowdown in industrial activity or same-customer growth.

FERG. At roughly ~$245 per share the stock trades near ~24x trailing earnings, above its own five-year median of about ~21x and well above a typical industrial distributor multiple, which is the market paying for scale and consistency rather than for growth. Management raised 2026 guidance to mid-single-digit net sales growth with an adjusted operating margin of roughly ~9.5% to ~9.8%. The multiple leaves little cushion if residential demand stays flat into 2027, since most of the current earnings growth is coming from non-residential volume, acquisitions and share count reduction rather than a broad recovery.

Headline figures (approximate, early 2026): FAST shows revenue (ttm) ~$7.5-8 billion, operating margin ~20%, revenue growth Mid-single-digit, cyclical with industry, return on invested capital High, consistently strong; FERG shows market cap ~$47.4B, revenue (ttm) ~$31.5B, q2 2026 net sales (quarter ended june 30) ~$8.75B, up ~4.6% year over year, q2 2026 diluted eps ~$3.43, up ~6.9%.

FAST and FERG are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FAST and FERG exposure against your real portfolio. It is not an investment adviser.