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 $14.2B against $2.4B — 6.0× the size. Kennametal Inc. trades at the lower P/E: 6.9× against 26.0×. 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 (2.60% vs 1.21%). 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 6.86 25.95 25.95
P/S 1.00 3.20 1.32
P/B 1.45 9.22 1.93
Price to free cash flow n/m 26.26 18.46
EV/EBITDA 4.82 17.70 12.84
EV/Sales 1.26 3.44 1.31
Earnings yield 14.58% 3.85% 3.73%
Free cash flow yield (3.37%) 3.81% 4.23%

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% 35.90%
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 2.60% 1.21% 1.68%
Payout ratio 0.18 0.32 0.38

Size

Metric KMT LECO Tools & Accessories median
Market cap 2.37b 14.18b 7.83b

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