Kennametal Inc. (KMT) vs Timken Company (The) (TKR)

Kennametal Inc. and Timken Company (The) are both Tools & Accessories companies. Timken Company (The) is the larger, with a market value of $6.9B against $1.8B — 3.9× the size. Kennametal Inc. trades at the lower P/E: 3.0× against 23.8×. Kennametal Inc. grew revenue faster over the last twelve months: 32.5% against 5.95%. Kennametal Inc. has the higher net margin (22.5% vs 5.88%) and the higher return on invested capital (18.7% vs 6.76%). Both pay a dividend; Kennametal Inc. yields more (3.43% vs 1.43%). Across the 22 metrics below, Kennametal Inc. leads on 18 and Timken Company (The) on 4.

Valuation

Metric KMT TKR Tools & Accessories median
P/E 3.01 23.82 23.82
P/S 0.68 1.43 1.27
P/B 39.84 40.07 3.60
Price to free cash flow n/m 15.36 15.76
EV/EBITDA 2.77 10.97 12.84
EV/Sales 1.01 1.74 1.66
Earnings yield 33.28% 4.20% 4.03%
Free cash flow yield (15.97%) 6.51% 5.82%

Profitability

Metric KMT TKR Tools & Accessories median
Gross margin 50.59% 31.26% 34.62%
Operating margin 31.00% 10.98% 10.65%
Net margin 22.49% 5.88% 6.76%
Free cash flow margin (10.86%) 9.30% 9.30%
Return on equity 86.20% 16.33% 10.51%
Return on assets 18.46% 4.19% 4.19%
Return on invested capital 18.65% 6.76% 7.05%

Growth

Metric KMT TKR Tools & Accessories median
Revenue growth (TTM) 32.48% 5.95% 6.18%
EPS growth (last fiscal year) 268.33% (17.64%) 35.90%
Revenue growth, 5-year CAGR 5.06% 5.45% 5.26%
Net income growth, 5-year CAGR 44.45% 0.27% 2.99%

Health

Metric KMT TKR Tools & Accessories median
Debt to equity 0.61 0.57 0.53
Current ratio 3.45 2.56 2.60
Net debt to EBITDA 1.01 1.97 1.21

Dividend

Metric KMT TKR Tools & Accessories median
Dividend yield 3.43% 1.43% 1.55%
Payout ratio 0.11 0.34 0.34

Size

Metric KMT TKR Tools & Accessories median
Market cap 1.77b 6.93b 7.39b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack