Analyzing Blount International (BLT) and Kennametal (NYSE:KMT)

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

Dividends

Kennametal pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. 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 raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

96.8% of Kennametal shares are owned by institutional investors. 3.0% of Kennametal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Blount International -10.78% -75.34% -12.19%
Kennametal 2.39% 12.51% 5.29%

Analyst Ratings

This is a summary of current recommendations for Blount International and Kennametal, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blount International 0 0 0 0 N/A
Kennametal 0 4 7 0 2.64

Kennametal has a consensus target price of $43.75, suggesting a potential upside of 30.99%. Given Kennametal’s higher possible upside, analysts plainly believe Kennametal is more favorable than Blount International.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blount International N/A N/A N/A N/A N/A
Kennametal $2.06 billion 1.31 $296.82 million $0.60 55.67

Kennametal has higher revenue and earnings than Blount International.

Summary

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

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.

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.

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