Kennametal Inc. (KMT) vs Lincoln Electric Holdings, Inc. (LECO)

Kennametal Inc. and Lincoln Electric Holdings, Inc. are both Tools & Accessories companies. Lincoln Electric Holdings, Inc. is the larger, with a market value of $14.5B against $2.3B — 6.3× the size. Kennametal Inc. trades at the lower P/E: 6.9× against 26.9×. Kennametal Inc. grew revenue faster over the last twelve months: 19.8% against 9.32%. Kennametal Inc. has the higher net margin (14.5% vs 12.4%) and the lower return on invested capital (13.2% vs 19.5%). Both pay a dividend; Kennametal Inc. yields more (3.36% vs 1.12%). Across the 22 metrics below, Kennametal Inc. leads on 16 and Lincoln Electric Holdings, Inc. on 6.

Valuation

Metric KMT LECO Tools & Accessories median
P/E 6.91 26.90 25.91
P/S 1.00 3.31 1.36
P/B 1.47 9.56 1.98
Price to free cash flow n/m 27.22 18.96
EV/EBITDA 4.85 18.30 13.02
EV/Sales 1.27 3.55 1.27
Earnings yield 14.47% 3.72% 3.72%
Free cash flow yield (3.35%) 3.67% 4.42%

Profitability

Metric KMT LECO Tools & Accessories median
Gross margin 41.16% 35.96% 33.41%
Operating margin 20.05% 17.13% 10.31%
Net margin 14.53% 12.35% 5.43%
Free cash flow margin (3.36%) 12.18% 8.16%
Return on equity 23.31% 37.74% 7.80%
Return on assets 11.99% 14.68% 3.79%
Return on invested capital 13.21% 19.49% 6.23%

Growth

Metric KMT LECO Tools & Accessories median
Revenue growth (TTM) 19.82% 9.32% 5.45%
EPS growth (last fiscal year) 268.33% 14.36% —
Revenue growth, 5-year CAGR 5.06% 9.78% 5.45%
Net income growth, 5-year CAGR 44.45% 20.36% 0.27%

Health

Metric KMT LECO Tools & Accessories median
Debt to equity 0.44 0.74 0.44
Current ratio 2.62 1.98 2.62
Net debt to EBITDA 1.01 1.21 1.21

Dividend

Metric KMT LECO Tools & Accessories median
Dividend yield 3.36% 1.12% 2.20%
Payout ratio 0.55 0.30 0.35

Size

Metric KMT LECO Tools & Accessories median
Market cap 2.30b 14.52b 8.25b

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