Critical Comparison: Fastenal (NASDAQ:FAST) vs. BioNexus Gene Lab (NASDAQ:BGLC)

BioNexus Gene Lab (NASDAQ:BGLC) and Fastenal (NASDAQ:FAST) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BioNexus Gene Lab and Fastenal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BioNexus Gene Lab	1	0	0	0	1.00
Fastenal	2	6	5	0	2.23

Fastenal has a consensus price target of $48.83, indicating a potential upside of 1.50%. Given Fastenal’s stronger consensus rating and higher possible upside, analysts plainly believe Fastenal is more favorable than BioNexus Gene Lab.

Volatility & Risk

BioNexus Gene Lab has a beta of 4.08, meaning that its stock price is 308% more volatile than the S&P 500. Comparatively, Fastenal has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Profitability

This table compares BioNexus Gene Lab and Fastenal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BioNexus Gene Lab	-54.70%	-37.43%	-32.88%
Fastenal	15.45%	34.03%	26.16%

Valuation & Earnings

This table compares BioNexus Gene Lab and Fastenal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BioNexus Gene Lab	$5.31 million	0.65	-$2.98 million	($1.48)	-0.97
Fastenal	$8.20 billion	6.73	$1.26 billion	$1.18	40.77

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

Institutional & Insider Ownership

18.9% of BioNexus Gene Lab shares are owned by institutional investors. Comparatively, 81.4% of Fastenal shares are owned by institutional investors. 0.1% of BioNexus Gene Lab shares are owned by insiders. Comparatively, 0.3% of Fastenal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Fastenal beats BioNexus Gene Lab on 13 of the 14 factors compared between the two stocks.

About BioNexus Gene Lab

BioNexus Gene Lab Corp., through its subsidiary, sells chemical raw material products in Malaysia, Indonesia, Vietnam, and other countries in Southeast Asia. The company offers chemical raw material products, which include Polyester Resin SHCP 268, a thixotropic, quick-curing unsaturated polyester resin suitable as a general-purpose resin; Polyester Resin 9509, a general-purpose material used in production of marine boats and water slides; and Polyester Resin 2802 used as a component in the pultrusion process by certain manufacturers. Its products are used to produce handrails, bench tops, automotive and aero parts, and paneling for hospital, laboratory, industrial clean rooms, and covers for various instruments used in manufacturing. The company also involves in developing and providing non-invasive liquid biopsy tests for the early detection of biomarkers to detect potential risk of diseases. It markets its products through its website, warehouse, marketing personnel, and suppliers. The company was incorporated in 2017 and is based in Kuala Lumpur, Malaysia.

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.