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KMT vs MGRC

KMT
Kennametal Inc.
NEUTRAL
Price
$39.24
Market Cap
$2.99B
Sector
Industrials
AI Confidence
85%
MGRC
McGrath RentCorp
BULLISH
Price
$120.04
Market Cap
$2.95B
Sector
Industrials
AI Confidence
75%

Valuation

P/E Ratio
KMT
27.44
MGRC
18.9
Forward P/E
KMT
15.31
MGRC
17.06
P/B Ratio
KMT
2.27
MGRC
2.39
P/S Ratio
KMT
1.47
MGRC
3.12
EV/EBITDA
KMT
11.13
MGRC
13.2

Profitability

Gross Margin
KMT
31.22%
MGRC
48.19%
Operating Margin
KMT
10.23%
MGRC
28.89%
Profit Margin
KMT
5.43%
MGRC
16.55%
ROE
KMT
8.87%
MGRC
13.24%
ROA
KMT
4.48%
MGRC
6.57%

Growth

Revenue Growth
KMT
9.8%
MGRC
5.3%
Earnings Growth
KMT
91.3%
MGRC
28.1%

Financial Health

Debt/Equity
KMT
0.47
MGRC
0.43
Current Ratio
KMT
2.55
MGRC
1.79
Quick Ratio
KMT
0.95
MGRC
1.34

Dividends

Dividend Yield
KMT
2.04%
MGRC
1.62%
Payout Ratio
KMT
55.94%
MGRC
30.39%

AI Verdict

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
MGRC BULLISH

MGRC presents a stable financial profile with a Piotroski F-Score of 4/9 and a strong balance sheet characterized by a low Debt/Equity ratio of 0.43. While the stock trades at a premium to its Graham Number ($84.74), it remains significantly discounted relative to its growth-based intrinsic value of $187.32. Strong earnings growth (28.10% YoY) and a consistent track record of earnings beats support a bullish outlook, though the bearish technical trend and variable interest rate exposure provide a necessary hedge to optimism.

Strengths
Strong earnings growth (28.10% YoY) and consistent EPS beats over 25 quarters
Conservative leverage with a Debt/Equity ratio of 0.43
High operating margins (28.89%) and gross margins (48.19%)
Risks
Significant exposure to variable interest rates with no hedging instruments in place
Restrictive credit covenants that limit operational flexibility and capital allocation
Revenue sensitivity to public school funding for modular classroom units

Compare Another Pair

KMT vs MGRC: Head-to-Head Comparison

This page compares Kennametal Inc. (KMT) and McGrath RentCorp (MGRC) 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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