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DCI vs KMT
Which Stock Would AI Choose? Donaldson Company, Inc. (DCI) vs. Kennametal Inc. (KMT) Stock Comparison
Key Takeaways
- Donaldson Company, Inc. (DCI) and Kennametal Inc. (KMT) both operate in the industrials sector but serve distinct end markets, with DCI focused on filtration systems and KMT on metal-cutting tools and hard materials.
- In recent market activity, DCI has demonstrated steady performance supported by acquisitions and recurring aftermarket revenue, while KMT reported strong fiscal 2026 sales growth amid improving industrial demand but faced analyst rating adjustments.
- Market capitalization for DCI stands near $11 billion compared to approximately $2.7 billion for KMT, reflecting differences in scale and investor positioning.
- Sector exposure for both companies ties to industrial production cycles, though DCI benefits from diversified segments including life sciences and KMT from aerospace, defense, and energy applications.
- Recent momentum shows DCI maintaining consistent dividend growth and share repurchases, whereas KMT delivered notable earnings beats alongside elevated raw material cost pressures affecting cash flow.
- Relative performance highlights trade-offs between DCI’s stability in filtration markets and KMT’s higher volatility tied to commodity inputs and tooling demand.
Introduction
Investors and traders evaluating industrial stocks often compare companies with overlapping yet differentiated exposures to manufacturing, infrastructure, and specialized equipment markets. Donaldson Company, Inc. (DCI) and Kennametal Inc. (KMT) provide such a contrast, offering insights into filtration technology versus advanced tooling and materials solutions. This comparison appeals to those assessing relative performance, sector positioning, and market sentiment within the broader industrials space, particularly amid fluctuating economic indicators and supply-chain dynamics.
DCI Overview and Recent Performance
Donaldson Company, Inc. (DCI) manufactures filtration systems and replacement parts across mobile, industrial, and life sciences segments. In recent weeks, the stock has reflected measured gains amid record quarterly sales and earnings from the third fiscal quarter, driven by volume growth, pricing, and contributions from the Facet Filtration acquisition. Sentiment has been supported by management guidance for 3-5% sales growth in fiscal 2026, alongside ongoing dividend increases and share buybacks that underscore a focus on shareholder returns. Broader market activity has highlighted resilience in aftermarket recurring revenue streams despite headwinds in certain heavy-equipment markets.
KMT Overview and Recent Performance
Kennametal Inc. (KMT) develops and applies tungsten carbides, ceramics, and hard materials through metal cutting and infrastructure segments. Recent market activity shows the company delivering robust fiscal 2026 results, including significant organic sales growth and record adjusted earnings per share, fueled by strategic wins in aerospace, defense, and energy. However, performance has also been influenced by tungsten price dynamics and inventory adjustments that pressured operating cash flow. Analyst sentiment has shown mixed signals, with some firms adjusting price targets lower following the earnings release, reflecting caution around raw-material timing and forward guidance.
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Head-to-Head Comparison
Business models differ markedly: DCI emphasizes a razor-and-blade approach with high-margin replacement filters and aftermarket sales exceeding 65% of revenue, while KMT centers on precision tooling and wear components with exposure to cyclical metalworking demand. Growth drivers for DCI include life sciences expansion and acquisitions enhancing filtration capabilities, whereas KMT benefits from volume recovery in aerospace and defense alongside infrastructure applications. Recent momentum favors DCI’s steadier trajectory and dividend consistency against KMT’s sharper earnings expansion offset by cash-flow variability. Risk factors encompass raw-material volatility for KMT and potential shifts in heavy-machinery cycles for DCI. Sector exposure remains aligned with industrials, yet DCI offers broader geographic and end-market diversification. Market sentiment reflects institutional interest in both, with DCI attracting steady ownership and KMT drawing attention to its growth inflection.
Tickeron AI Verdict
Based on observable factors such as trend consistency in aftermarket revenue, stability of margins, and positioning within less commodity-sensitive segments, Tickeron’s AI models would currently assign a modestly higher probability of favorable relative performance to DCI over KMT. KMT’s recent earnings strength provides clear catalysts, yet elevated input-cost sensitivity and recent analyst adjustments introduce greater variability. The assessment remains probabilistic and tied to continued monitoring of industrial production data and supply-chain indicators.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DCI is a Hold and KMT is a Hold.
| DCI | KMT | DCI / KMT | |
| Capitalization | 10.3B | 2.24B | 459% |
| EBITDA | 694M | 633M | 110% |
| Gain YTD | 1.654 | 5.369 | 31% |
| P/E Ratio | 23.18 | 6.66 | 348% |
| Revenue | 3.81B | 2.36B | 162% |
| Total Cash | N/A | 95.8M | - |
| Total Debt | 608M | 764M | 80% |
DCI | KMT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 58 | 76 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 41 Fair valued | 7 Undervalued | |
PROFIT vs RISK RATING 1..100 | 51 | 100 | |
SMR RATING 1..100 | 35 | 40 | |
PRICE GROWTH RATING 1..100 | 56 | 59 | |
P/E GROWTH RATING 1..100 | 58 | 97 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
KMT's Valuation (7) in the Industrial Machinery industry is somewhat better than the same rating for DCI (41) in the Industrial Specialties industry. This means that KMT’s stock grew somewhat faster than DCI’s over the last 12 months.
DCI's Profit vs Risk Rating (51) in the Industrial Specialties industry is somewhat better than the same rating for KMT (100) in the Industrial Machinery industry. This means that DCI’s stock grew somewhat faster than KMT’s over the last 12 months.
DCI's SMR Rating (35) in the Industrial Specialties industry is in the same range as KMT (40) in the Industrial Machinery industry. This means that DCI’s stock grew similarly to KMT’s over the last 12 months.
DCI's Price Growth Rating (56) in the Industrial Specialties industry is in the same range as KMT (59) in the Industrial Machinery industry. This means that DCI’s stock grew similarly to KMT’s over the last 12 months.
DCI's P/E Growth Rating (58) in the Industrial Specialties industry is somewhat better than the same rating for KMT (97) in the Industrial Machinery industry. This means that DCI’s stock grew somewhat faster than KMT’s over the last 12 months.
| DCI | KMT | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 77% | 2 days ago 80% |
| Stochastic ODDS (%) | 2 days ago 61% | 2 days ago 67% |
| Momentum ODDS (%) | 2 days ago 46% | 2 days ago 65% |
| MACD ODDS (%) | 2 days ago 43% | 2 days ago 54% |
| TrendWeek ODDS (%) | 2 days ago 45% | 2 days ago 65% |
| TrendMonth ODDS (%) | 2 days ago 43% | 2 days ago 66% |
| Advances ODDS (%) | 9 days ago 50% | 17 days ago 63% |
| Declines ODDS (%) | 3 days ago 39% | 3 days ago 65% |
| BollingerBands ODDS (%) | 2 days ago 65% | 2 days ago 76% |
| Aroon ODDS (%) | 2 days ago 35% | 2 days ago 70% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DCI’s FA Score shows that 0 FA rating(s) are green while KMT’s FA Score has 1 green FA rating(s).
- DCI’s FA Score: 0 green, 5 red.
- KMT’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DCI’s TA Score shows that 5 TA indicator(s) are bullish while KMT’s TA Score has 4 bullish TA indicator(s).
- DCI’s TA Score: 5 bullish, 6 bearish.
- KMT’s TA Score: 4 bullish, 6 bearish.
Price Growth
DCI (@Industrial Machinery) experienced а -1.96% price change this week, while KMT (@Tools & Hardware) price change was -5.09% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -3.58%. For the same industry, the average monthly price growth was -10.55%, and the average quarterly price growth was -2.92%.
The average weekly price growth across all stocks in the @Tools & Hardware industry was -4.44%. For the same industry, the average monthly price growth was -5.18%, and the average quarterly price growth was +1.74%.
Reported Earning Dates
DCI is expected to report earnings on Dec 02, 2026.
KMT is expected to report earnings on Nov 02, 2026.
Industries' Descriptions
@Industrial Machinery (-3.58% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
@Tools & Hardware (-4.44% weekly)Tools & Hardware industry includes companies that manufacture security products, storage cabinets, steel rules and tapes, calipers, shoe hook fasteners, lumber, structural materials and other related supplies. Stanley Black & Decker, Inc., Snap-on Incorporated and L.S. Starrett Company are some of the largest, established players in this industry. The industry is also seeing rapid growth in online sales. The proliferation of do-it-yourself (DIY) projects has boosted industry demand. But oil price volatility poses potential risks to this industry, particularly to e-commerce companies which spend on services of shipping companies, which might alter charges based on oil price movements.
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DCI and
Correlation & Price change
A.I.dvisor indicates that over the last year, DCI has been closely correlated with LECO. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if DCI jumps, then LECO could also see price increases.
| Ticker / NAME | Correlation To DCI | 1D Price Change % | ||
|---|---|---|---|---|
| DCI | 100% | +1.21% | ||
| LECO - DCI | 73% Closely correlated | +0.80% | ||
| SWK - DCI | 68% Closely correlated | +0.01% | ||
| ATMU - DCI | 67% Closely correlated | N/A | ||
| HLMN - DCI | 67% Closely correlated | N/A | ||
| KMT - DCI | 65% Loosely correlated | +1.06% | ||
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KMT and
Correlation & Price change
A.I.dvisor indicates that over the last year, KMT has been closely correlated with HLIO. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if KMT jumps, then HLIO could also see price increases.
| Ticker / NAME | Correlation To KMT | 1D Price Change % | ||
|---|---|---|---|---|
| KMT | 100% | +1.06% | ||
| HLIO - KMT | 70% Closely correlated | +3.82% | ||
| MIDD - KMT | 69% Closely correlated | +2.45% | ||
| TNC - KMT | 68% Closely correlated | -0.38% | ||
| SXI - KMT | 65% Loosely correlated | +0.86% | ||
| WTS - KMT | 64% Loosely correlated | +1.64% | ||
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