AIT vs MSM: Applied Industrial Technologies and MSC Industrial Direct Company compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Applied Industrial Technologies is the larger company, worth $12.2B, about 1.7 times MSC Industrial Direct Company.
- Applied Industrial Technologies grew revenue faster over the last year (+10.4% vs +7.8%).
- Applied Industrial Technologies keeps more of each dollar of revenue as operating profit (11.1% vs 8.5%).
- On earnings, Applied Industrial Technologies is the cheaper stock (31.4x vs 33.9x).
- MSC Industrial Direct Company's price assumes faster free cash flow growth: about 10% a year, against 9% for Applied Industrial Technologies (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | AIT | MSM |
|---|---|---|
| Market cap | $12.2B | $7.0B |
| Share price | $335.38 | $129.51 |
| Revenue (last fiscal year) | $5.0B | $3.8B |
| Free cash flow (last fiscal year) | $461M | $241M |
| Revenue growth, last year | +10.4% | +7.8% |
| Revenue growth per year, last 5 fiscal years | +6.8% | +3.8% |
| Operating margin | 11.1% | 8.5% |
| Net margin | 8.3% | 5.9% |
| Return on equity | 22.3% | 16.3% |
| P/E (trailing) | 31.4x | 33.9x |
| Price / free cash flow | 26.3x | 29.2x |
| EV / EBITDA | 20.5x | 17.8x |
| FCF growth the price implies | 8.7% | 9.9% |
| Dividend yield | 0.56% | 2.7% |
| Debt / equity | 0.62x | 0.76x |
| Fundamental grade | C | C |
| Superinvestors holding it | 2 | 6 |
| Insider purchases, last 12 months | 0 | 5 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Applied Industrial Technologies
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $3.8B | $169M | 9.4% |
| 2023 | $4.4B | $317M | 10.7% |
| 2024 | $4.5B | $347M | 11.1% |
| 2025 | $4.6B | $465M | 10.9% |
| 2026 | $5.0B | $461M | 11.1% |
MSC Industrial Direct Company
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $3.2B | $171M | 9.3% |
| 2022 | $3.7B | $185M | 12.7% |
| 2023 | $4.0B | $607M | 12.1% |
| 2024 | $3.8B | $311M | 10.2% |
| 2025 | $3.8B | $241M | 8.0% |
Where the revenue comes from
Applied Industrial Technologies · by segments, 2026
MSC Industrial Direct Company
No segment breakdown reported.
Questions
Which is bigger, Applied Industrial Technologies or MSC Industrial Direct Company?
Applied Industrial Technologies (AIT), at $12.2B against $7.0B.
Is AIT or MSM cheaper?
By trailing P/E, Applied Industrial Technologies (31.4x) is cheaper than MSC Industrial Direct Company (33.9x). A lower multiple can also mean the market expects less growth.
Which grows faster, AIT or MSM?
Applied Industrial Technologies: revenue grew +10.4% over the last year, against +7.8%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.