Eastern Company (The) (EML) vs Kennametal Inc. (KMT)

Eastern Company (The) and Kennametal Inc. are both Tools & Accessories companies. Kennametal Inc. is the larger, with a market value of $2.3B against $148.0M — 15.5× the size. Kennametal Inc. trades at the lower P/E: 6.9× against 18.3×. Kennametal Inc. grew revenue faster over the last twelve months: 19.8% against −11.9%. Kennametal Inc. has the higher net margin (14.5% vs 3.39%) and the higher return on invested capital (13.2% vs 2.86%). Both pay a dividend; Kennametal Inc. yields more (3.36% vs 1.81%). Across the 22 metrics below, Kennametal Inc. leads on 15 and Eastern Company (The) on 7.

Valuation

Metric EML KMT Tools & Accessories median
P/E 18.27 6.91 25.91
P/S 0.62 1.00 1.36
P/B 1.13 1.47 1.98
Price to free cash flow 9.70 n/m 18.96
EV/EBITDA 13.02 4.85 13.02
EV/Sales 0.76 1.27 1.27
Earnings yield 5.47% 14.47% 3.72%
Free cash flow yield 10.31% (3.35%) 4.42%

Profitability

Metric EML KMT Tools & Accessories median
Gross margin 21.56% 41.16% 33.41%
Operating margin 3.07% 20.05% 10.31%
Net margin 3.39% 14.53% 5.43%
Free cash flow margin 6.41% (3.36%) 8.16%
Return on equity 6.32% 23.31% 7.80%
Return on assets 3.39% 11.99% 3.79%
Return on invested capital 2.86% 13.21% 6.23%

Growth

Metric EML KMT Tools & Accessories median
Revenue growth (TTM) (11.91%) 19.82% 5.45%
EPS growth (last fiscal year) 185.40% 268.33% —
Revenue growth, 5-year CAGR 4.73% 5.06% 5.45%
Net income growth, 5-year CAGR 5.70% 44.45% 0.27%

Health

Metric EML KMT Tools & Accessories median
Debt to equity 0.34 0.44 0.44
Current ratio 2.80 2.62 2.62
Net debt to EBITDA 1.71 1.01 1.21

Dividend

Metric EML KMT Tools & Accessories median
Dividend yield 1.81% 3.36% 2.20%
Payout ratio 0.41 0.55 0.35

Size

Metric EML KMT Tools & Accessories median
Market cap 148.02m 2.30b 8.25b

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