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 $8.3B against $2.3B — 3.6× the size. Kennametal Inc. trades at the lower P/E: 6.9× against 31.6×. Kennametal Inc. grew revenue faster over the last twelve months: 19.8% against 5.45%. Kennametal Inc. has the higher net margin (14.5% vs 5.43%) and the higher return on invested capital (13.2% vs 6.23%). Both pay a dividend; Kennametal Inc. yields more (3.36% vs 1.69%). 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 6.91 31.57 25.91
P/S 1.00 1.71 1.36
P/B 1.47 2.43 1.98
Price to free cash flow n/m 21.01 18.96
EV/EBITDA 4.85 13.32 13.02
EV/Sales 1.27 2.07 1.27
Earnings yield 14.47% 3.17% 3.72%
Free cash flow yield (3.35%) 4.76% 4.42%

Profitability

Metric KMT TKR Tools & Accessories median
Gross margin 41.16% 30.83% 33.41%
Operating margin 20.05% 10.55% 10.31%
Net margin 14.53% 5.43% 5.43%
Free cash flow margin (3.36%) 8.16% 8.16%
Return on equity 23.31% 7.80% 7.80%
Return on assets 11.99% 3.79% 3.79%
Return on invested capital 13.21% 6.23% 6.23%

Growth

Metric KMT TKR Tools & Accessories median
Revenue growth (TTM) 19.82% 5.45% 5.45%
EPS growth (last fiscal year) 268.33% (17.64%) —
Revenue growth, 5-year CAGR 5.06% 5.45% 5.45%
Net income growth, 5-year CAGR 44.45% 0.27% 0.27%

Health

Metric KMT TKR Tools & Accessories median
Debt to equity 0.44 0.62 0.44
Current ratio 2.62 3.10 2.62
Net debt to EBITDA 1.01 1.97 1.21

Dividend

Metric KMT TKR Tools & Accessories median
Dividend yield 3.36% 1.69% 2.20%
Payout ratio 0.55 0.21 0.35

Size

Metric KMT TKR Tools & Accessories median
Market cap 2.30b 8.25b 8.25b

Compare with another peer

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