Kennametal Inc. (KMT) vs Stanley Black & Decker, Inc. (SWK)

Kennametal Inc. and Stanley Black & Decker, Inc. are both Tools & Accessories companies. Stanley Black & Decker, Inc. is the larger, with a market value of $13.6B against $2.3B — 5.9× the size. Kennametal Inc. trades at the lower P/E: 6.9× against 22.2×. Kennametal Inc. grew revenue faster over the last twelve months: 19.8% against 0.57%. Kennametal Inc. has the higher net margin (14.5% vs 4.07%) and the higher return on invested capital (13.2% vs 5.44%). Both pay a dividend; Stanley Black & Decker, Inc. yields more (3.73% vs 3.36%). Across the 22 metrics below, Kennametal Inc. leads on 17 and Stanley Black & Decker, Inc. on 5.

Valuation

Metric KMT SWK Tools & Accessories median
P/E 6.91 22.24 25.91
P/S 1.00 0.90 1.36
P/B 1.47 1.53 1.98
Price to free cash flow n/m 10.51 18.96
EV/EBITDA 4.85 10.91 13.02
EV/Sales 1.27 1.17 1.27
Earnings yield 14.47% 4.50% 3.72%
Free cash flow yield (3.35%) 9.52% 4.42%

Profitability

Metric KMT SWK Tools & Accessories median
Gross margin 41.16% 31.90% 33.41%
Operating margin 20.05% 7.50% 10.31%
Net margin 14.53% 4.07% 5.43%
Free cash flow margin (3.36%) 8.57% 8.16%
Return on equity 23.31% 6.89% 7.80%
Return on assets 11.99% 2.91% 3.79%
Return on invested capital 13.21% 5.44% 6.23%

Growth

Metric KMT SWK Tools & Accessories median
Revenue growth (TTM) 19.82% 0.57% 5.45%
EPS growth (last fiscal year) 268.33% 35.90% —
Revenue growth, 5-year CAGR 5.06% 3.48% 5.45%
Net income growth, 5-year CAGR 44.45% (18.68%) 0.27%

Health

Metric KMT SWK Tools & Accessories median
Debt to equity 0.44 0.53 0.44
Current ratio 2.62 1.43 2.62
Net debt to EBITDA 1.01 3.99 1.21

Dividend

Metric KMT SWK Tools & Accessories median
Dividend yield 3.36% 3.73% 2.20%
Payout ratio 0.55 0.86 0.35

Size

Metric KMT SWK Tools & Accessories median
Market cap 2.30b 13.62b 8.25b

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