Kennametal Inc. (KMT) vs RBC Bearings Incorporated (RBC)

Kennametal Inc. and RBC Bearings Incorporated are both Tools & Accessories companies. RBC Bearings Incorporated 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 41.3×. Kennametal Inc. grew revenue faster over the last twelve months: 32.5% against 17.4%. Kennametal Inc. has the higher net margin (22.5% vs 17.5%) and the higher return on invested capital (18.7% vs 7.39%). Across the 21 metrics below, Kennametal Inc. leads on 16 and RBC Bearings Incorporated on 5.

Valuation

Metric KMT RBC Tools & Accessories median
P/E 3.01 41.29 23.82
P/S 0.68 7.25 1.27
P/B 39.84 4.12 3.60
Price to free cash flow n/m 36.73 15.76
EV/EBITDA 2.77 24.21 12.84
EV/Sales 1.01 7.55 1.66
Earnings yield 33.28% 2.42% 4.03%
Free cash flow yield (15.97%) 2.72% 5.82%

Profitability

Metric KMT RBC Tools & Accessories median
Gross margin 50.59% 45.52% 34.62%
Operating margin 31.00% 24.44% 10.65%
Net margin 22.49% 17.51% 6.76%
Free cash flow margin (10.86%) 19.73% 9.30%
Return on equity 86.20% 10.51% 10.51%
Return on assets 18.46% 6.88% 4.19%
Return on invested capital 18.65% 7.39% 7.05%

Growth

Metric KMT RBC Tools & Accessories median
Revenue growth (TTM) 32.48% 17.42% 6.18%
EPS growth (last fiscal year) 268.33% 18.05% 35.90%
Revenue growth, 5-year CAGR 5.06% 25.17% 5.26%
Net income growth, 5-year CAGR 44.45% 26.13% 2.99%

Health

Metric KMT RBC Tools & Accessories median
Debt to equity 0.61 0.20 0.53
Current ratio 3.45 3.13 2.60
Net debt to EBITDA 1.01 1.48 1.21

Dividend

Metric KMT RBC Tools & Accessories median
Dividend yield 3.43% — 1.55%
Payout ratio 0.11 — 0.34

Size

Metric KMT RBC Tools & Accessories median
Market cap 1.77b 14.72b 7.39b

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