Kennametal Inc. (KMT) vs Toro Company (The) (TTC)

Kennametal Inc. and Toro Company (The) are both Tools & Accessories companies. Toro Company (The) is the larger, with a market value of $9.2B against $2.3B — 4.0× the size. Kennametal Inc. trades at the lower P/E: 6.9× against 25.9×. Kennametal Inc. grew revenue faster over the last twelve months: 19.8% against 5.15%. Kennametal Inc. has the higher net margin (14.5% vs 7.64%) and the lower return on invested capital (13.2% vs 14.4%). Both pay a dividend; Kennametal Inc. yields more (3.36% vs 1.44%). Across the 22 metrics below, Kennametal Inc. leads on 17 and Toro Company (The) on 5.

Valuation

Metric KMT TTC Tools & Accessories median
P/E 6.91 25.91 25.91
P/S 1.00 1.95 1.36
P/B 1.47 6.92 1.98
Price to free cash flow n/m 12.76 18.96
EV/EBITDA 4.85 15.81 13.02
EV/Sales 1.27 2.11 1.27
Earnings yield 14.47% 3.86% 3.72%
Free cash flow yield (3.35%) 7.84% 4.42%

Profitability

Metric KMT TTC Tools & Accessories median
Gross margin 41.16% 33.41% 33.41%
Operating margin 20.05% 10.31% 10.31%
Net margin 14.53% 7.64% 5.43%
Free cash flow margin (3.36%) 15.25% 8.16%
Return on equity 23.31% 26.45% 7.80%
Return on assets 11.99% 10.30% 3.79%
Return on invested capital 13.21% 14.42% 6.23%

Growth

Metric KMT TTC Tools & Accessories median
Revenue growth (TTM) 19.82% 5.15% 5.45%
EPS growth (last fiscal year) 268.33% (20.95%) —
Revenue growth, 5-year CAGR 5.06% 5.95% 5.45%
Net income growth, 5-year CAGR 44.45% (0.84%) 0.27%

Health

Metric KMT TTC Tools & Accessories median
Debt to equity 0.44 0.72 0.44
Current ratio 2.62 1.58 2.62
Net debt to EBITDA 1.01 1.05 1.21

Dividend

Metric KMT TTC Tools & Accessories median
Dividend yield 3.36% 1.44% 2.20%
Payout ratio 0.55 0.37 0.35

Size

Metric KMT TTC Tools & Accessories median
Market cap 2.30b 9.17b 8.25b

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