Kennametal (KMT) Competitors

Donaldson (NYSE:DCI) and Kennametal (NYSE:KMT) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, media sentiment, risk, institutional ownership, community ranking, profitability, analyst recommendations, valuation and dividends.

Does the MarketBeat Community believe in DCI or KMT?

Donaldson received 35 more outperform votes than Kennametal when rated by MarketBeat users. Likewise, 64.75% of users gave Donaldson an outperform vote while only 55.36% of users gave Kennametal an outperform vote.

Company	Underperform	Outperform
Donaldson	Outperform Votes 474 64.75%	Underperform Votes 258 35.25%
Kennametal	Outperform Votes 439 55.36%	Underperform Votes 354 44.64%

Does the media prefer DCI or KMT?

In the previous week, Donaldson had 8 more articles in the media than Kennametal. MarketBeat recorded 18 mentions for Donaldson and 10 mentions for Kennametal. Kennametal's average media sentiment score of 0.72 beat Donaldson's score of 0.08 indicating that Kennametal is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Donaldson	5 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	4 Very Negative mention(s)	Neutral
Kennametal	4 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals & insiders have more ownership in DCI or KMT?

82.8% of Donaldson shares are held by institutional investors. 2.7% of Donaldson shares are held by company insiders. Comparatively, 1.4% of Kennametal shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Do analysts rate DCI or KMT?

Donaldson currently has a consensus target price of $69.67, suggesting a potential downside of 8.81%. Kennametal has a consensus target price of $24.60, suggesting a potential downside of 13.56%. Given Donaldson's stronger consensus rating and higher probable upside, research analysts plainly believe Donaldson is more favorable than Kennametal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donaldson	1 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00
Kennametal	2 Sell rating(s)	3 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.60

Which has preferable earnings & valuation, DCI or KMT?

Donaldson has higher revenue and earnings than Kennametal. Kennametal is trading at a lower price-to-earnings ratio than Donaldson, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Donaldson	$3.59B	2.55	$414M	$3.38	22.60
Kennametal	$2.05B	1.08	$109.32M	$1.28	22.23

Is DCI or KMT a better dividend stock?

Donaldson pays an annual dividend of $1.08 per share and has a dividend yield of 1.4%. Kennametal pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Donaldson pays out 32.0% of its earnings in the form of a dividend. Kennametal pays out 62.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Donaldson has raised its dividend for 38 consecutive years.

Which has more volatility and risk, DCI or KMT?

Donaldson has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Kennametal has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Is DCI or KMT more profitable?

Donaldson has a net margin of 11.54% compared to Kennametal's net margin of 4.98%. Donaldson's return on equity of 29.47% beat Kennametal's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Donaldson	11.54%	29.47%	14.78%
Kennametal	4.98%	8.35%	4.34%

Summary

Donaldson beats Kennametal on 18 of the 21 factors compared between the two stocks.