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 $18.9B against $1.8B — 10.7× the size. Kennametal Inc. trades at the lower P/E: 3.0× against 18.7×. Kennametal Inc. grew revenue faster over the last twelve months: 32.5% against 3.14%. Kennametal Inc. has the higher net margin (22.5% vs 20.8%) and the higher return on invested capital (18.7% vs 15.4%). Both pay a dividend; Kennametal Inc. yields more (3.43% vs 2.67%). Across the 22 metrics below, Kennametal Inc. leads on 15 and Snap-On Incorporated on 7.

Valuation

Metric KMT SNA Tools & Accessories median
P/E 3.01 18.74 23.82
P/S 0.68 3.89 1.27
P/B 39.84 3.09 3.60
Price to free cash flow n/m 17.18 15.76
EV/EBITDA 2.77 12.82 12.84
EV/Sales 1.01 3.73 1.66
Earnings yield 33.28% 5.34% 4.03%
Free cash flow yield (15.97%) 5.82% 5.82%

Profitability

Metric KMT SNA Tools & Accessories median
Gross margin 50.59% 50.49% 34.62%
Operating margin 31.00% 26.99% 10.65%
Net margin 22.49% 20.82% 6.76%
Free cash flow margin (10.86%) 22.64% 9.30%
Return on equity 86.20% 16.91% 10.51%
Return on assets 18.46% 11.89% 4.19%
Return on invested capital 18.65% 15.35% 7.05%

Growth

Metric KMT SNA Tools & Accessories median
Revenue growth (TTM) 32.48% 3.14% 6.18%
EPS growth (last fiscal year) 268.33% (1.64%) 35.90%
Revenue growth, 5-year CAGR 5.06% 5.71% 5.26%
Net income growth, 5-year CAGR 44.45% 10.15% 2.99%

Health

Metric KMT SNA Tools & Accessories median
Debt to equity 0.61 0.15 0.53
Current ratio 3.45 3.55 2.60
Net debt to EBITDA 1.01 (0.31) 1.21

Dividend

Metric KMT SNA Tools & Accessories median
Dividend yield 3.43% 2.67% 1.55%
Payout ratio 0.11 0.51 0.34

Size

Metric KMT SNA Tools & Accessories median
Market cap 1.77b 18.90b 7.39b

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