Fastenal vs Jackson Financial Which Is More Promising?

Fastenal and Jackson Financial are two leading companies in the industrial and financial sectors respectively. Fastenal is a distributor of industrial and construction supplies, catering to a wide range of industries. On the other hand, Jackson Financial is a financial services company offering insurance and investment products. Both companies have demonstrated strong performance over the years, but they operate in different sectors, making them appealing to different types of investors. This comparison will provide insight into their financial metrics and growth prospects for potential investors.

Fastenal or Jackson Financial?

When comparing Fastenal and Jackson Financial, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Fastenal and Jackson Financial.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Fastenal has a dividend yield of 1.97%, while Jackson Financial has a dividend yield of 3.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fastenal reports a 5-year dividend growth of 2.94% year and a payout ratio of 94.14%. On the other hand, Jackson Financial reports a 5-year dividend growth of 0.00% year and a payout ratio of -26.11%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Fastenal P/E ratio at 39.20 and Jackson Financial's P/E ratio at -7.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fastenal P/B ratio is 12.58 while Jackson Financial's P/B ratio is 0.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Fastenal has seen a 5-year revenue growth of 0.49%, while Jackson Financial's is -0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fastenal's ROE at 33.30% and Jackson Financial's ROE at -9.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $78.65 for Fastenal and $90.47 for Jackson Financial. Over the past year, Fastenal's prices ranged from $61.33 to $84.88, with a yearly change of 38.40%. Jackson Financial's prices fluctuated between $47.49 and $115.22, with a yearly change of 142.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.