Kennametal (KMT) & Hardinge (HDNG) Head-To-Head Analysis
Kennametal (NYSE: KMT) and Hardinge (NASDAQ:HDNG) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.
Volatility and Risk
Kennametal has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Hardinge has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
This table compares Kennametal and Hardinge’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Kennametal and Hardinge’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kennametal||$2.06 billion||1.54||$296.82 million||$0.60||65.53|
|Hardinge||$296.76 million||0.64||$16.45 million||$0.22||66.23|
Kennametal has higher revenue and earnings than Hardinge. Kennametal is trading at a lower price-to-earnings ratio than Hardinge, indicating that it is currently the more affordable of the two stocks.
Kennametal pays an annual dividend of $0.80 per share and has a dividend yield of 2.0%. Hardinge pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. 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. Hardinge pays out 36.4% of its earnings in the form of a dividend. Kennametal has increased its dividend for 6 consecutive years. Kennametal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
96.9% of Kennametal shares are held by institutional investors. Comparatively, 71.4% of Hardinge shares are held by institutional investors. 2.0% of Kennametal shares are held by insiders. Comparatively, 11.5% of Hardinge shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings for Kennametal and Hardinge, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kennametal currently has a consensus price target of $43.75, indicating a potential upside of 11.27%. Given Kennametal’s higher probable upside, analysts plainly believe Kennametal is more favorable than Hardinge.
Kennametal beats Hardinge on 14 of the 16 factors compared between the two stocks.
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.
Hardinge Inc. (Hardinge) is a designer, manufacturer and distributor of machine tools, specializing in precision computer numerically controlled metalcutting machines and workholding technology solutions. The Company supplies high precision computer controlled metalcutting turning machines, grinding machines, machining centers and repair parts related to those machines. It also engineers and supplies high precision, standard and specialty workholding devices, and other machine tool accessories. It operates through two segments: Metalcutting Machine Solutions (MMS), and Aftermarket Tooling and Accessories (ATA). The MMS segment includes high precision computer controlled metalcutting turning machines, vertical machining centers, horizontal machining centers, and grinding machines. The ATA segment includes products, primarily collets and chucks that are purchased by manufacturers throughout the lives of their Hardinge or other branded machines.
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