Kennametal (NYSE: KMT) and Blount International (NYSE:BLT) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitabiliy.

Valuation & Earnings

This table compares Kennametal and Blount International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kennametal $2.06 billion 1.43 $286.01 million $0.60 61.10
Blount International N/A N/A N/A N/A N/A

Kennametal has higher revenue and earnings than Blount International.

Dividends

Kennametal pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. Blount International does not pay a dividend. Kennametal pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blount International has increased its dividend for 6 consecutive years.

Profitability

This table compares Kennametal and Blount International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kennametal 2.39% 12.81% 5.35%
Blount International -10.78% -75.34% -12.19%

Institutional and Insider Ownership

97.2% of Kennametal shares are owned by institutional investors. 3.0% of Kennametal shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Kennametal and Blount International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kennametal 0 5 6 0 2.55
Blount International 0 0 0 0 N/A

Kennametal presently has a consensus target price of $43.01, suggesting a potential upside of 17.32%. Given Kennametal’s higher probable upside, analysts clearly believe Kennametal is more favorable than Blount International.

Summary

Kennametal beats Blount International on 9 of the 11 factors compared between the two stocks.

Kennametal Company Profile

Kennametal Inc. is a supplier of tooling, engineered components and materials consumed in production processes. The Company operates through two segments: Industrial and Infrastructure. The Industrial segment generally serves customers that operate in industrial end markets, such as transportation, general engineering, aerospace and defense. The Infrastructure segment generally serves customers that operate in the earthworks and energy sectors supporting primary industries, such as oil and gas, power generation, underground, surface and hard-rock mining, highway construction and road maintenance. It provides wear-resistant products, application engineering and services backed by material science serving customers across various sectors. The Company’s product offerings include a selection of standard and customized technologies for metalworking, such as metal cutting tools, tooling systems and services, as well as materials, such as cemented tungsten carbide products and super alloys.

Blount International Company Profile

Blount International, Inc. (Blount) designs, manufactures, and markets equipment, replacement and component parts, and accessories for professionals and consumers. The Company operates in two business segments: Forestry, Lawn, and Garden (FLAG) segment, and Farm, Ranch, and Agriculture (FRAG). The FLAG segment manufactures and markets cutting chain, guide bars and drive sprockets for chain saw use, and lawnmower and other cutting blades for outdoor power equipment. The FLAG segment also purchases replacement parts and accessories from other manufacturers and markets them, under Blount ‘s brands. The FRAG segment designs, manufactures, assembles and markets attachments and implements for tractors in mowing, cutting, clearing, material handling, landscaping and grounds maintenance applications, as well as log splitters, post-hole diggers, self-propelled lawnmowers, attachments for off-highway construction equipment applications, and other general purpose tractor attachments.

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