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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 $14.7B against $1.8B — 8.3× the size. Kennametal Inc. trades at the lower P/E: 3.0× against 25.9×. Kennametal Inc. grew revenue faster over the last twelve months: 32.5% against 11.1%. Kennametal Inc. has the higher net margin (22.5% vs 12.4%) and the lower return on invested capital (18.7% vs 20.7%). Both pay a dividend; Kennametal Inc. yields more (3.43% vs 1.16%). Across the 22 metrics below, Kennametal Inc. leads on 17 and Lincoln Electric Holdings, Inc. on 5.

Valuation

Metric KMT LECO Tools & Accessories median
P/E 3.01 25.89 23.82
P/S 0.68 3.19 1.27
P/B 39.84 9.54 3.60
Price to free cash flow n/m 28.59 15.76
EV/EBITDA 2.77 17.49 12.84
EV/Sales 1.01 3.42 1.66
Earnings yield 33.28% 3.86% 4.03%
Free cash flow yield (15.97%) 3.50% 5.82%

Profitability

Metric KMT LECO Tools & Accessories median
Gross margin 50.59% 35.49% 34.62%
Operating margin 31.00% 17.29% 10.65%
Net margin 22.49% 12.40% 6.76%
Free cash flow margin (10.86%) 11.17% 9.30%
Return on equity 86.20% 38.75% 10.51%
Return on assets 18.46% 14.93% 4.19%
Return on invested capital 18.65% 20.71% 7.05%

Growth

Metric KMT LECO Tools & Accessories median
Revenue growth (TTM) 32.48% 11.13% 6.18%
EPS growth (last fiscal year) 268.33% 14.36% 35.90%
Revenue growth, 5-year CAGR 5.06% 9.78% 5.26%
Net income growth, 5-year CAGR 44.45% 20.36% 2.99%

Health

Metric KMT LECO Tools & Accessories median
Debt to equity 0.61 0.74 0.53
Current ratio 3.45 1.91 2.60
Net debt to EBITDA 1.01 1.21 1.21

Dividend

Metric KMT LECO Tools & Accessories median
Dividend yield 3.43% 1.16% 1.55%
Payout ratio 0.11 0.30 0.34

Size

Metric KMT LECO Tools & Accessories median
Market cap 1.77b 14.74b 7.39b

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