Critical Analysis: Fastenal (NASDAQ:FAST) versus Rocky Mountain Dealerships (OTCMKTS:RCKXF)

Fastenal (NASDAQ:FAST) and Rocky Mountain Dealerships (OTCMKTS:RCKXF) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares Fastenal and Rocky Mountain Dealerships’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fastenal	15.54%	33.54%	25.33%
Rocky Mountain Dealerships	N/A	N/A	N/A

Valuation and Earnings

This table compares Fastenal and Rocky Mountain Dealerships”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fastenal	$7.48 billion	5.86	$1.16 billion	$2.01	38.08
Rocky Mountain Dealerships	N/A	N/A	N/A	N/A	N/A

Fastenal has higher revenue and earnings than Rocky Mountain Dealerships.

Institutional & Insider Ownership

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

Analyst Ratings

This is a summary of current recommendations and price targets for Fastenal and Rocky Mountain Dealerships, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fastenal	0	7	2	0	2.22
Rocky Mountain Dealerships	0	0	0	0	N/A

Fastenal currently has a consensus target price of $73.33, suggesting a potential downside of 4.19%. Given Fastenal’s higher possible upside, equities research analysts plainly believe Fastenal is more favorable than Rocky Mountain Dealerships.

Summary

Fastenal beats Rocky Mountain Dealerships on 8 of the 8 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 Rocky Mountain Dealerships

Rocky Mountain Dealerships Inc., through its subsidiaries, sells, rents, leases, and provides support services for new and used agriculture and industrial equipment. The company provides tractors, planters, air drills and carts, sprayers, floaters, liquid nutrient applicators, balers, combines and combine heads, tillage, loaders and attachments, mowers and conditioners, and windrowers, as well as used equipment and replacement parts for agriculture and construction applications. It also offers third-party equipment financing and insurance services; and in-branch and mobile/on-site repair and maintenance services, as well as provides or arranges other ancillary offerings, such as GPS signal subscriptions. The company offers products of various brands, such as Case IH Agriculture, Case Construction, New Holland, Bourgault, Seed Hawk, MacDon, and Claas through its store and online. As of March 10, 2020, it operated a dealership network of 37 branches under the Rocky Mountain Equipment and RME Deal Zone USA trade names in Alberta, Manitoba, and Saskatchewan, Western Canada, as well as Tonganoxie, Kansas. Rocky Mountain Dealerships Inc. was incorporated in 2007 and is headquartered in Calgary, Canada.