Kennametal Inc. (KMT) vs Snap-On Incorporated (SNA)

Kennametal Inc. and Snap-On Incorporated are both Tools & Accessories companies. Snap-On Incorporated is the larger, with a market value of $19.0B against $2.3B — 8.3× the size. Kennametal Inc. trades at the lower P/E: 6.9× against 18.5×. Kennametal Inc. grew revenue faster over the last twelve months: 19.8% against 4.26%. Snap-On Incorporated has the higher net margin (21.3% vs 14.5%) and the higher return on invested capital (15.8% vs 13.2%). Both pay a dividend; Kennametal Inc. yields more (3.36% vs 2.59%). Across the 22 metrics below, Kennametal Inc. leads on 11 and Snap-On Incorporated on 11.

Valuation

Metric KMT SNA Tools & Accessories median
P/E 6.91 18.54 25.91
P/S 1.00 3.92 1.36
P/B 1.47 3.15 1.98
Price to free cash flow n/m 16.91 18.96
EV/EBITDA 4.85 12.71 13.02
EV/Sales 1.27 3.77 1.27
Earnings yield 14.47% 5.39% 3.72%
Free cash flow yield (3.35%) 5.92% 4.42%

Profitability

Metric KMT SNA Tools & Accessories median
Gross margin 41.16% 50.46% 33.41%
Operating margin 20.05% 27.59% 10.31%
Net margin 14.53% 21.25% 5.43%
Free cash flow margin (3.36%) 23.21% 8.16%
Return on equity 23.31% 17.51% 7.80%
Return on assets 11.99% 12.27% 3.79%
Return on invested capital 13.21% 15.80% 6.23%

Growth

Metric KMT SNA Tools & Accessories median
Revenue growth (TTM) 19.82% 4.26% 5.45%
EPS growth (last fiscal year) 268.33% (1.64%) —
Revenue growth, 5-year CAGR 5.06% 5.71% 5.45%
Net income growth, 5-year CAGR 44.45% 10.15% 0.27%

Health

Metric KMT SNA Tools & Accessories median
Debt to equity 0.44 0.15 0.44
Current ratio 2.62 3.43 2.62
Net debt to EBITDA 1.01 (0.31) 1.21

Dividend

Metric KMT SNA Tools & Accessories median
Dividend yield 3.36% 2.59% 2.20%
Payout ratio 0.55 0.35 0.35

Size

Metric KMT SNA Tools & Accessories median
Market cap 2.30b 19.02b 8.25b

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