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CAT vs KMT

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
KMT
Kennametal Inc.
NEUTRAL
Price
$39.24
Market Cap
$2.99B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
KMT
27.44
Forward P/E
CAT
26.48
KMT
15.31
P/B Ratio
CAT
16.05
KMT
2.27
P/S Ratio
CAT
5.09
KMT
1.47
EV/EBITDA
CAT
26.1
KMT
11.13

Profitability

Gross Margin
CAT
28.79%
KMT
31.22%
Operating Margin
CAT
16.02%
KMT
10.23%
Profit Margin
CAT
13.14%
KMT
5.43%
ROE
CAT
43.53%
KMT
8.87%
ROA
CAT
7.89%
KMT
4.48%

Growth

Revenue Growth
CAT
18.0%
KMT
9.8%
Earnings Growth
CAT
-11.4%
KMT
91.3%

Financial Health

Debt/Equity
CAT
2.07
KMT
0.47
Current Ratio
CAT
1.44
KMT
2.55
Quick Ratio
CAT
0.87
KMT
0.95

Dividends

Dividend Yield
CAT
0.85%
KMT
2.04%
Payout Ratio
CAT
31.05%
KMT
55.94%

AI Verdict

CAT NEUTRAL

CAT shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 18.0%
Strong ROE of 43.5%
Risks
High valuation with P/E of 39.0
Premium vs Graham Number ($139.4)
High debt burden with D/E of 2.07
KMT NEUTRAL

KMT exhibits exceptional financial health with a Piotroski F-Score of 8/9 and a strong current ratio of 2.55, indicating high operational efficiency and liquidity. While earnings growth is explosive (91.3% YoY), the stock is currently trading at a significant premium to its Graham Number ($23.57), though it remains slightly below its growth-based intrinsic value ($42.18). The fundamental strength is heavily offset by bearish insider sentiment (4 sales, 0 buys) and a severely weak technical trend (10/100). Consequently, the stock appears fundamentally sound but technically overextended and lacking internal conviction.

Strengths
Strong Piotroski F-Score (8/9) indicating robust financial health
Explosive earnings growth (91.3% YoY) and consistent earnings beats
Conservative leverage with a Debt/Equity ratio of 0.47
Risks
Strongly bearish insider activity with $3.24M in recent sales
Very weak technical trend (10/100) suggesting a potential reversal or consolidation
Low net profit margins (5.43%) compared to operating margins

Compare Another Pair

CAT vs KMT: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Kennametal Inc. (KMT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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