Keith Speights, The Motley Fool
5 min read
In This Article:
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Fastenal is the easy pick for income investors among these three stock-split stocks.
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Value investors probably won't like any of these stocks, although Interactive Brokers has the lowest forward earnings multiple.
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Growth investors will likely prefer O'Reilly Automotive.
On the surface, Fastenal (NASDAQ: FAST), O'Reilly Automotive (NASDAQ: ORLY), and Interactive Brokers Group (NASDAQ: IBKR) might seem to have practically nothing in common. Fastenal is a leader in the distribution of industrial and construction supplies, especially fasteners. O'Reilly operates a chain of after-market auto parts stores. Interactive Brokers runs a popular online brokerage.
But these three stocks share at least one common denominator. They've each announced stock splits this year. Fastenal conducted a 2-for-1 stock split on May 22. O'Reilly had a 15-for-1 stock split on June 9. Interactive Brokers split its stock 4-for-1 on June 17.
Which of these three stock-split stocks is the best pick for investors now? Here's how Fastenal, O'Reilly, and Interactive Brokers compare.
O'Reilly Automotive leads the pack on some key financial metrics. The company generated revenue of $16.87 billion over the last 12 months, well above Fastenal's $7.61 billion and Interactive Brokers' $5.4 billion. Unsurprisingly, it also posted the greatest profits.
But when it comes to profitability, based on net profit margin, the three stocks are neck-and-neck. Fastenal comes out slightly ahead, though, with a net profit margin of 15.1% versus O'Reilly's and Interactive Brokers' net profit margins of 14.1% and 14.7%, respectively.
Interactive Brokers appears to claim the strongest balance sheet. Its cash position of nearly $89.7 billion is more than five times greater than its debt of $17.15 billion. Fastenal's and O'Reilly's debt loads are larger than their cash stockpiles.
There's no contest between these three stock-split stocks on current growth. Interactive Brokers' revenue jumped 18.6% year over year in the first quarter of 2025, with earnings soaring 21.7%.
The growth delivered by Fastenal and O'Reilly pales in comparison. Fastenal's net sales rose by 3.4% year over year in Q1. Its earnings edged only 0.3% higher. O'Reilly reported revenue growth of 4%, with earnings declining by 1.6%.
What about future growth? O'Reilly comes out on top, at least according to analysts surveyed by LSEG. Wall Street projects the auto parts chain to deliver earnings growth of 12.5% next year, higher than the estimates of 9.8% earnings growth for Fastenal and 7.3% growth for Interactive Brokers.
