Better Stock-Split Stock: Fastenal, O'Reilly Automotive, or Interactive Brokers?

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.

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Which of these three stock-split stocks is the best pick for investors now? Here's how Fastenal, O'Reilly, and Interactive Brokers compare.

Image source: Getty Images.

Financials

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.

Growth

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.

Valuation

Which stock is valued most attractively depends on how far you look into the future. Interactive Brokers has the lowest trailing 12-month price-to-earnings ratio and forward P/E multiple (which looks ahead one year).

However, O'Reilly boasts a lower price-to-earnings-to-growth (PEG) ratio (which is based on analysts' five-year earnings growth projections) than Fastenal. LSEG didn't provide a PEG ratio for Interactive Brokers. As we have already seen, though, analysts seem to think that O'Reilly will deliver stronger earnings growth going forward.

Dividends

It's an easy decision in crowning a dividend winner among these three stocks. Fastenal takes the prize with its forward dividend yield of 2.13%. The construction and industrial parts distributor has also increased its dividend for an impressive 27 consecutive years.

Interactive Brokers' forward dividend yield is a puny 0.63%. The online brokerage has increased its dividend for only two years in a row. O'Reilly doesn't currently offer a dividend.

Best stock-split stock

Your investment style will dictate which of these stock-split stocks is the best choice for you.

If you're an income investor, Fastenal is the easy pick. Value investors probably won't find any of these stocks very appealing. However, I view O'Reilly Automotive as the most attractively valued of the three. My opinion is based largely on O'Reilly's stronger growth prospects, which make it the best option for growth investors. Since O'Reilly wins in two areas, I also think it's the best overall pick.

By the way, the stock splits for Fastenal, O'Reilly, and Interactive Brokers make no difference whatsoever in which stock to buy. All the splits do is make the respective share prices lower, but they don't impact the underlying businesses at all.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.