Kennametal vs Lincoln Electric
KMT and LECO side by side, both in industrial and commercial machinery and computer equipment. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.
How KMT and LECO compare
Lincoln Electric is the larger company, worth 6.8 times as much as Kennametal ($15.1B against $2.2B).
On earnings, Kennametal is cheaper: it trades at 6.6× trailing earnings, against 27.7× for Lincoln Electric.
Kennametal grew revenue faster over the last twelve months (19.8% versus 9.3% for Lincoln Electric).
Kennametal keeps more of each dollar of sales as profit, with a net margin of 14.5% compared with 12.4% at Lincoln Electric.
Both pay dividends: Kennametal yields 2.7% and Lincoln Electric 1.1%.
Kennametal scores higher on the StockData Score (23 against 16 for Lincoln Electric), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.
Key numbers
A dot marks the better figure where higher or lower is clearly better.
| Metric | KMT | LECO |
|---|---|---|
| Size and price | ||
| Market cap | $2.2B | $15.1B |
| Share price | $29.10 | $276.92 |
| Change, 1 year | 27.1% | 18.1% |
| Change, 5 years | −24.5% | 93.2% |
| Beta (5Y) | 1.04 | 0.98 |
| Employees | 8,073 | 66 |
| StockData Score | ||
| Total score | 23 (better) | 16 |
| Valuation score | 6 (better) | 1 |
| Growth score | 5 (better) | 0 |
| Performance score | 5 | 6 (better) |
| Health score | 4 | 5 (better) |
| Dividend score | 3 | 4 (better) |
| Valuation | ||
| P/E | 6.6× (better) | 27.7× |
| P/S | 0.9× (better) | 3.4× |
| P/B | 1.4× (better) | 9.7× |
| EV/EBITDA | 4.6× (better) | 18.4× |
| P/FCF | – | 27.8× |
| PEG | 0.15 (better) | 5.48 |
| FCF yield | −3.6% | 3.6% (better) |
| Fair value | $99.34 | $230.49 |
| Margin of safety | 70.7% (better) | −20.1% |
| Growth | ||
| Revenue growth (TTM) | 19.8% (better) | 9.3% |
| Revenue growth, 5Y average | 5.1% | 9.8% (better) |
| Net income growth (TTM) | 268% (better) | 10.1% |
| EPS growth (TTM) | 268% (better) | 12.5% |
| EPS growth, 5Y average | 46.7% (better) | 22.2% |
| Profitability | ||
| Gross margin | 41.2% (better) | 36.0% |
| Operating margin | 20.1% (better) | 17.1% |
| Net margin | 14.5% (better) | 12.4% |
| FCF margin | −3.4% | 12.1% (better) |
| Return on equity | 24.0% | 37.7% (better) |
| Return on invested capital | 18.4% | 24.6% (better) |
| Financial health | ||
| Debt / equity | 0.44 (better) | 0.74 |
| Net debt / EBITDA | 0.96 (better) | 1.04 |
| Interest coverage | 16.5× (better) | 13.1× |
| Current ratio | 2.62 (better) | 1.98 |
| Altman Z-score | 3.16 | 7.79 (better) |
| Piotroski F-score | 7 | 7 |
| Dividends and buybacks | ||
| Dividend yield | 2.7% (better) | 1.1% |
| Payout ratio | 17.8% | 30.9% |
| Years of dividend growth | 0 | 16 (better) |
| Dividend growth, 5Y average | 0.00% | 9.0% (better) |
| Buyback yield | 0.46% | 1.6% (better) |
| Shareholder yield | 3.2% (better) | 2.7% |
| Ownership | ||
| Held by institutions | 105% | 81.7% |
| Held by insiders | 1.1% | 0.53% |
| Insider net buying, 12 months | −$5.4M (better) | −$8.3M |
| Short interest, % of float | 8.8% | 2.2% |
Go deeper
- KMT stock overview
- KMT income statement
- KMT valuation and score
- LECO stock overview
- LECO income statement
- LECO valuation and score
Other comparisons
For information only, not investment advice. Check the source filings before relying on any figure.