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 $1.8B against $163.7M — 10.8× the size. Kennametal Inc. trades at the lower P/E: 3.0× against 19.7×. Kennametal Inc. grew revenue faster over the last twelve months: 32.5% against −11.9%. Kennametal Inc. has the higher net margin (22.5% vs 3.39%) and the higher return on invested capital (18.7% vs 2.86%). Both pay a dividend; Kennametal Inc. yields more (3.47% vs 1.67%). Across the 22 metrics below, Kennametal Inc. leads on 17 and Eastern Company (The) on 5.

Valuation

Metric EML KMT Tools & Accessories median
P/E 19.72 2.97 24.49
P/S 0.67 0.67 1.29
P/B 1.22 0.95 2.01
Price to free cash flow 10.47 n/m 15.80
EV/EBITDA 13.86 2.75 12.85
EV/Sales 0.81 1.00 1.67
Earnings yield 5.07% 33.65% 3.95%
Free cash flow yield 9.55% (16.15%) 5.81%

Profitability

Metric EML KMT Tools & Accessories median
Gross margin 21.56% 50.59% 34.62%
Operating margin 3.07% 31.00% 10.65%
Net margin 3.39% 22.49% 6.76%
Free cash flow margin 6.41% (10.86%) 9.25%
Return on equity 6.32% 36.99% 9.44%
Return on assets 3.39% 18.46% 4.19%
Return on invested capital 2.86% 18.65% 7.05%

Growth

Metric EML KMT Tools & Accessories median
Revenue growth (TTM) (11.91%) 32.48% 6.05%
EPS growth (last fiscal year) 185.40% 268.33% 35.90%
Revenue growth, 5-year CAGR 4.73% 5.06% 5.26%
Net income growth, 5-year CAGR 5.70% 44.45% 2.99%

Health

Metric EML KMT Tools & Accessories median
Debt to equity 0.34 0.61 0.53
Current ratio 2.80 3.45 2.56
Net debt to EBITDA 1.71 1.01 1.21

Dividend

Metric EML KMT Tools & Accessories median
Dividend yield 1.67% 3.47% 1.58%
Payout ratio 0.33 0.11 0.34

Size

Metric EML KMT Tools & Accessories median
Market cap 163.74m 1.77b 6.93b

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