Comparing Tile Shop Hldgs (NASDAQ:TTSH) and Fastenal (NASDAQ:FAST)

Fastenal (NASDAQ:FAST) and Tile Shop Hldgs (NASDAQ:TTSH) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Fastenal has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Tile Shop Hldgs has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Fastenal and Tile Shop Hldgs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fastenal	15.13%	31.99%	24.36%
Tile Shop Hldgs	0.23%	0.65%	0.25%

Insider and Institutional Ownership

81.4% of Fastenal shares are owned by institutional investors. Comparatively, 36.7% of Tile Shop Hldgs shares are owned by institutional investors. 0.4% of Fastenal shares are owned by company insiders. Comparatively, 36.7% of Tile Shop Hldgs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Fastenal and Tile Shop Hldgs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fastenal	1	8	2	0	2.09
Tile Shop Hldgs	0	0	0	0	0.00

Fastenal presently has a consensus price target of $40.40, suggesting a potential downside of 2.47%. Given Fastenal’s stronger consensus rating and higher possible upside, research analysts plainly believe Fastenal is more favorable than Tile Shop Hldgs.

Earnings and Valuation

This table compares Fastenal and Tile Shop Hldgs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fastenal	$7.55 billion	6.30	$1.15 billion	$1.00	41.42
Tile Shop Hldgs	$347.07 million	0.82	$2.32 million	$0.02	316.75

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

Summary

Fastenal beats Tile Shop Hldgs on 11 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 Tile Shop Hldgs

Tile Shop Holdings, Inc. operates as a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. The company offers natural stone products, including marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products, comprises ceramic, porcelain, glass, cement, wood look, and metal and luxury vinyl tile. It also manufactures setting and maintenance materials, such as thinset, grout, and sealers; and accessories which includes installation tools, shower and bath shelves, drains, and related products. In addition, the company offers customers delivery service through third-party freight providers. It sells its products under the Superior Adhesives & Chemicals, Superior Tools & Supplies, Rush River, and Fired Earth brands. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.