Comparing Stock Splits: Fastenal, O'Reilly Automotive, or Interactive Brokers - Which is the Superior choice?
In the rapidly evolving world of finance, three companies have recently made headlines with their stock splits: Fastenal, O'Reilly Automotive, and Interactive Brokers. Among these, O'Reilly Automotive stands out as the best choice for growth-focused investors.
Fastenal, renowned for its income-generating potential, has a relatively high forward price-to-earnings (PE) ratio, making it less appealing to those seeking rapid growth [4]. Interactive Brokers, on the other hand, exhibits strong double-digit growth in accounts, equity on its platform, and trading activity, along with investments in technology and automation [1]. However, its lowest forward earnings multiple may not be as compelling to growth investors compared to O'Reilly.
O'Reilly Automotive, following a 15-for-1 stock split on June 9, has reduced its share price to a more accessible level. The company benefits from structural tailwinds, such as the aging U.S. vehicle fleet, which boosts demand for automotive parts and services. O'Reilly's robust share repurchase program, having bought back more than 59% of shares since 2011, further enhances shareholder value [1][2].
The company's growth prospects are reflected in its strong market performance. Over the past 52 weeks, O'Reilly's stock has gained about 34.24%, demonstrating confidence from investors [1][2]. Growth investors are particularly attracted to O'Reilly Automotive due to its expansion potential and market position.
In contrast, Interactive Brokers has a debt of $17.15 billion [3]. O'Reilly Automotive, on the other hand, generated revenue of $16.87 billion over the last 12 months [2]. It's worth noting that Fastenal's net sales rose by 3.4% year over year in Q1, and it generated revenue of $7.61 billion over the same period [2]. Interactive Brokers, meanwhile, generated revenue of $5.4 billion over the last 12 months and saw its earnings soar 21.7% year over year in Q1 of 2025 [2].
Interactive Brokers' Q1 revenue jumped 18.6% year over year in Q1 of 2025, and its earnings also increased by 21.7% during the same period [2]. Fastenal's earnings edged only 0.3% higher year over year in Q1, and its revenue growth was 4% year over year in Q1 [2]. O'Reilly reported revenue growth of 4% year over year in Q1 [2].
While the stock splits for Fastenal, O'Reilly, and Interactive Brokers do not impact the underlying businesses, O'Reilly Automotive is viewed as the most attractively valued of the three, based on its stronger growth prospects [5]. Its lower price-to-earnings-to-growth (PEG) ratio also underscores its growth potential [5].
It's important to note that O'Reilly does not currently offer a dividend [6]. Fastenal, however, has a forward dividend yield of 2.13% and has increased its dividend for 27 consecutive years [2].
In conclusion, for growth-focused portfolios, O'Reilly Automotive stands out as the best stock-split stock option, making it an intriguing choice for investors seeking long-term growth potential.
- Growth investors are particularly drawn to O'Reilly Automotive due to its expansion potential and market position, as well as its lower price-to-earnings-to-growth (PEG) ratio, which underscores its growth potential.
- In the field of technology, Interactive Brokers has a debt of $17.15 billion, while O'Reilly Automotive generated revenue of $16.87 billion over the last 12 months.
- For those not seeking rapid growth, Fastenal, known for its income-generating potential, has a relatively high forward price-to-earnings (PE) ratio and offers a forward dividend yield of 2.13%.
- In the realm of sports and finance, investing in O'Reilly Automotive could be an interesting move for those with a long-term growth focus, as its recent 15-for-1 stock split has made its shares more accessible and it boasts strong growth prospects.
- Smartphone users and finance enthusiasts might find it beneficial to keep an eye on the stock market, considering the significant growth demonstrated by O'Reilly Automotive and its potential for future growth.
