Which Is a Better Investment, Fastenal Company or WW Grainger Inc Stock?

By AAII Staff
April 11, 2026
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Sifting through countless of stocks in the Trading Companies & Distributors industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Fastenal Company, W.W. Grainger or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Fastenal Company, W.W. Grainger and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Fastenal Company, W.W. Grainger and Inc.

Fastenal Company, together with its subsidiaries, engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, 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 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.

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment. It provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. The company also offers technical support and inventory management services. It serves smaller businesses to large corporations, government entities, and other institutions, as well as commercial, healthcare, and manufacturing industries through sales and service representatives, and electronic and ecommerce channels. W.W. Grainger, Inc. was founded in 1927 and is headquartered in Lake Forest, Illinois.

Latest Trading Companies & Distributors and Fastenal Company, W.W. Grainger, Inc. Stock News

As of April 10, 2026, Fastenal Company had a $56.5 billion market capitalization, compared to the Trading Companies & Distributors median of $5.4 million. Fastenal Company’s stock is up 22.5% in 2026, up 6.2% in the previous five trading days and up 38.12% in the past year.

Currently, Fastenal Company’s price-earnings ratio is 45.1. Fastenal Company’s trailing 12-month revenue is $8.2 billion with a 15.3% net profit margin. Year-over-year quarterly sales growth most recently was 11.1%. Analysts expect adjusted earnings to reach $1.233 per share for the current fiscal year. Fastenal Company currently has a 2.0% dividend yield.

As of April 10, 2026, W.W. Grainger, Inc. had a $55.5 billion market cap, putting it in the 94th percentile of all stocks. W.W. Grainger, Inc.’s stock is up 16.2% in 2026, up 4.9% in the previous five trading days and up 27.41% in the past year.

Currently, W.W. Grainger, Inc.’s price-earnings ratio is 33.1. W.W. Grainger, Inc.’s trailing 12-month revenue is $17.9 billion with a 9.5% net profit margin. Year-over-year quarterly sales growth most recently was 4.5%. Analysts expect adjusted earnings to reach $43.668 per share for the current fiscal year. W.W. Grainger, Inc. currently has a 0.8% dividend yield.

How We Compare Fastenal Company, W.W. Grainger and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Fastenal Company, W.W. Grainger and Inc.’s stock grades to see how they measure up against one another.

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Fastenal Company, W.W. Grainger and Inc. Stock Value Grades

Company Ticker Value
Fastenal Company FAST F
W.W. Grainger, Inc. GWW F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Fastenal Company has a Value Score of 11, which is Ultra Expensive. W.W. Grainger, Inc. has a Value Score of 18, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Fastenal Company, W.W. Grainger or Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Fastenal Company, W.W. Grainger or Inc. is the better investment when it comes to value.

Fastenal Company, W.W. Grainger and Inc. Growth Grades

Company Ticker Growth
Fastenal Company FAST A
W.W. Grainger, Inc. GWW A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Fastenal Company has a Growth Score of 100, which is Very Strong. W.W. Grainger, Inc. has a Growth Score of 100, which is Very Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Fastenal Company, W.W. Grainger and Inc. have a grade of A. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Fastenal Company, W.W. Grainger and Inc.’s Momentum Grades

Company Ticker Momentum
Fastenal Company FAST B
W.W. Grainger, Inc. GWW C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Fastenal Company has a Momentum Score of 65, which is Strong. W.W. Grainger, Inc. has a Momentum Score of 59, which is Average.

The Momentum Grade Winner: Fastenal Company

As you can clearly see from the Momentum Grade breakdown above, Fastenal Company is considered to have stronger momentum compared to W.W. Grainger, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Fastenal Company could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Fastenal Company, W.W. Grainger and Inc. Grades

In addition to Momentum, Value and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Fastenal Company, W.W. Grainger and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Fastenal Company, W.W. Grainger or Inc. Stock?

Overall, Fastenal Company stock has a Value Score of 11, Growth Score of 100 and Momentum Score of 65.

W.W. Grainger, Inc. stock has a Value Score of 18, Growth Score of 100 and Momentum Score of 59.

Comparing Fastenal Company, W.W. Grainger and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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