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EMR vs KMT
Which Stock Would AI Choose? Emerson Electric (EMR) vs. Kennametal (KMT) Stock Comparison
Key Takeaways
- EMR is a large-cap industrial automation leader, while KMT is a much smaller, value-priced supplier of metal-cutting tools and wear parts.
- EMR has posted stronger year-to-date relative performance, while KMT offers a significantly lower valuation and higher dividend yield.
- The two names carry different risk profiles: EMR faces premium-valuation and integration considerations, while KMT contends with tungsten cost volatility and restructuring expenses.
- Analyst consensus skews "Buy" on EMR, whereas KMT has drawn several recent downgrades despite a raised fiscal-year outlook.
- Both stocks report quarterly results in early November, making near-term catalyst and trend consistency a key point of comparison.
Introduction
Investors evaluating the industrial sector often weigh scale and secular growth against valuation and turnaround potential. EMR (Emerson Electric) and KMT (Kennametal) represent two distinct approaches to industrial exposure. Emerson is a diversified automation powerhouse with a market capitalization near $90 billion, while Kennametal is a specialized tooling manufacturer valued at roughly $2.4 billion. This stock comparison is most relevant to traders and investors weighing relative performance, market positioning, and risk-adjusted momentum between a blue-chip automation name and a cyclical, value-oriented supplier.
EMR Overview and Recent Performance
Emerson Electric is a leading industrial automation and process-control company that has simplified its portfolio in recent years by divesting climate technology and consumer businesses to become a more focused automation player. Its segments span automation software, valves, analytical instruments, and related hardware serving process and discrete manufacturing customers worldwide.
In recent weeks, EMR has traded near the upper end of its 52-week range, with shares around $160 against a roughly $122 to $166 band. Year-to-date total return has been strong, outpacing the broader market, supported by demand for automation and favorable analyst coverage. The stock carries a trailing P/E (price-to-earnings) ratio around 35 and a forward multiple near 22, reflecting a premium valuation tied to its growth profile. A consensus "Buy" rating and an average price target near $175 reflect generally constructive sentiment, though one prominent "Sell" rating highlights debate over valuation and capital-allocation decisions. Earnings results in early November represent the next major catalyst.
KMT Overview and Recent Performance
Kennametal, founded in 1938 and headquartered in Pittsburgh, manufactures tungsten carbide metal-cutting tooling and engineered wear components across its Metal Cutting and Infrastructure segments. Its products serve aerospace, energy, general engineering, transportation, and earthworks customers, making results sensitive to industrial production and raw-material costs.
In recent weeks, KMT has traded near $31, well below its 52-week high around $43 but above its low near $21. The company raised its fiscal 2026 sales and adjusted earnings guidance after strong quarterly results, citing higher volumes, tungsten-related pricing actions, and cost savings. Despite that, the stock has attracted several analyst downgrades tied to valuation and demand uncertainty. It trades at a trailing P/E near 7 and offers a dividend yield above 2.5%, a markedly different valuation profile from Emerson. Tungsten price volatility and a restructuring that includes facility closures in Germany and Pennsylvania remain key risk factors, with earnings due in early November.
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Head-to-Head Comparison
The most immediate contrast is scale and focus. EMR is a diversified automation leader exposed to secular trends such as factory automation, safety standards, and labor shortages, while KMT is a narrower, cyclical tooling supplier tied to manufacturing activity and infrastructure demand.
Valuation and income also diverge sharply. EMR trades at a premium multiple with a dividend yield near 1.4%, reflecting expectations for consistent organic growth. KMT trades near a single-digit P/E with a yield above 2.5%, a profile that typically signals a more mature, cost-sensitive business. Growth drivers differ accordingly: Emerson leans on automation adoption and portfolio focus, while Kennametal depends on volume recovery, pricing, and restructuring-driven margin gains.
Risk factors are likewise distinct. EMR carries a richer valuation and integration considerations from past acquisitions, while KMT faces tungsten price volatility, tariff exposure, and restructuring charges. On momentum, EMR has shown steadier recent relative performance, whereas KMT's gains have been more volatile and uneven. These trade-offs define the strategic choice between a premium secular-growth name and a value-oriented cyclical turnaround.
Tickeron AI Verdict
Based on observable trend consistency, valuation, and catalyst positioning, Tickeron's AI would likely favor EMR at present. The stock's steadier relative performance, constructive analyst consensus, and exposure to durable automation demand suggest a more consistent trend profile than KMT's volatile, downgrade-heavy tape. That said, the verdict is probabilistic rather than definitive: KMT offers a materially lower valuation and higher yield that may appeal to value-oriented strategies, especially if cost actions continue to lift margins. AI-driven systems weigh trend strength and stability heavily, and on those measures Emerson currently holds the edge, while Kennametal remains a candidate for strategies focused on mean-reversion and cyclical recovery.
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 EMR is a StrongBuy and KMT is a Hold.
EMR in upward trend: price rose above 50-day moving average on September 21, 2026
EMR moved above its 50-day moving average on September 21, 2026 date and that indicates a change from a downward trend to an upward trend. In 32 of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 21, 2026. You may want to consider a long position or call options on EMR as a result. In 56 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
The 10-day moving average for EMR crossed bullishly above the 50-day moving average on September 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +1.03% 3-day Advance, the price is estimated to grow further. Considering data from situations where EMR advanced for three days, in 213 of 342 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
The Aroon Indicator entered an Uptrend today. In 156 of 274 cases where EMR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 35 of 60 cases where EMR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 58%.
The Moving Average Convergence Divergence Histogram (MACD) for EMR turned negative on October 19, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 25 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 57%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EMR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 19 (best 1 - 100 worst), indicating outstanding price growth. EMR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 22 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 34 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 62 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 80 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.465) is normal, around the industry mean (4.327). P/E Ratio (35.536) is within average values for comparable stocks, (38.298). Projected Growth (PEG Ratio) (1.837) is also within normal values, averaging (1.879). Dividend Yield (0.014) settles around the average of (0.032) among similar stocks. P/S Ratio (4.409) is also within normal values, averaging (186.943).
KMT sees MACD Histogram just turned negative
KMT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 14, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 52 instances where the indicator turned negative. In 35 of the 52 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 67%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for KMT moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 20 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 65%.
The Momentum Indicator moved below the 0 level on October 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KMT as a result. In 58 of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 63%.
KMT moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KMT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 41 of 62 cases where KMT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 66%.
The 10-day moving average for KMT crossed bullishly above the 50-day moving average on October 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
Following a +2.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where KMT advanced for three days, in 195 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
KMT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 113 of 179 cases where KMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 63%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 40 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 42 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.514) is normal, around the industry mean (3.160). KMT has a moderately low P/E Ratio (6.929) as compared to the industry average of (22.360). KMT's Projected Growth (PEG Ratio) (0.050) is slightly lower than the industry average of (1.020). Dividend Yield (0.026) settles around the average of (0.017) among similar stocks. P/S Ratio (0.976) is also within normal values, averaging (2.217).
The Tickeron Price Growth Rating for this company is 51 (best 1 - 100 worst), indicating fairly steady price growth. KMT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 94 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KMT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock worse than average.
EMR | KMT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 83 | 88 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 80 Overvalued | 42 Fair valued | |
PROFIT vs RISK RATING 1..100 | 22 | 100 | |
SMR RATING 1..100 | 62 | 40 | |
PRICE GROWTH RATING 1..100 | 19 | 51 | |
P/E GROWTH RATING 1..100 | 34 | 94 | |
SEASONALITY SCORE 1..100 | 75 | n/a |
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 (42) in the Industrial Machinery industry is somewhat better than the same rating for EMR (80) in the Electrical Products industry. This means that KMT’s stock grew somewhat faster than EMR’s over the last 12 months.
EMR's Profit vs Risk Rating (22) in the Electrical Products industry is significantly better than the same rating for KMT (100) in the Industrial Machinery industry. This means that EMR’s stock grew significantly faster than KMT’s over the last 12 months.
KMT's SMR Rating (40) in the Industrial Machinery industry is in the same range as EMR (62) in the Electrical Products industry. This means that KMT’s stock grew similarly to EMR’s over the last 12 months.
EMR's Price Growth Rating (19) in the Electrical Products industry is in the same range as KMT (51) in the Industrial Machinery industry. This means that EMR’s stock grew similarly to KMT’s over the last 12 months.
EMR's P/E Growth Rating (34) in the Electrical Products industry is somewhat better than the same rating for KMT (94) in the Industrial Machinery industry. This means that EMR’s stock grew somewhat faster than KMT’s over the last 12 months.
| EMR | KMT | |
|---|---|---|
| RSI ODDS (%) | N/A | 1 day ago 65% |
| Stochastic ODDS (%) | 1 day ago 58% | 1 day ago 66% |
| Momentum ODDS (%) | 1 day ago 62% | 1 day ago 63% |
| MACD ODDS (%) | 1 day ago 57% | 1 day ago 67% |
| TrendWeek ODDS (%) | 1 day ago 59% | 1 day ago 64% |
| TrendMonth ODDS (%) | 1 day ago 56% | 1 day ago 65% |
| Advances ODDS (%) | 10 days ago 62% | 17 days ago 63% |
| Declines ODDS (%) | 3 days ago 56% | 1 day ago 64% |
| BollingerBands ODDS (%) | N/A | 1 day ago 62% |
| Aroon ODDS (%) | 1 day ago 57% | 1 day ago 63% |
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).
EMR’s FA Score shows that 2 FA rating(s) are green while KMT’s FA Score has 0 green FA rating(s).
- EMR’s FA Score: 2 green, 3 red.
- KMT’s FA Score: 0 green, 5 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.
EMR’s TA Score shows that 5 TA indicator(s) are bullish while KMT’s TA Score has 5 bullish TA indicator(s).
- EMR’s TA Score: 5 bullish, 3 bearish.
- KMT’s TA Score: 5 bullish, 5 bearish.
Price Growth
EMR (@Industrial Machinery) experienced а +1.26% price change this week, while KMT (@Tools & Hardware) price change was +0.68% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -7.37%. For the same industry, the average monthly price growth was -16.92%, and the average quarterly price growth was -22.09%.
The average weekly price growth across all stocks in the @Tools & Hardware industry was -1.93%. For the same industry, the average monthly price growth was -1.51%, and the average quarterly price growth was -4.54%.
Reported Earning Dates
EMR is expected to report earnings on Nov 04, 2026.
KMT is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Industrial Machinery (-7.37% 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 (-1.93% 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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EMR and
Correlation & Price change
A.I.dvisor indicates that over the last year, EMR has been closely correlated with AME. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if EMR jumps, then AME could also see price increases.
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% | -4.89% | ||
| HLIO - KMT | 70% Closely correlated | -4.16% | ||
| MIDD - KMT | 69% Closely correlated | +1.51% | ||
| TNC - KMT | 68% Closely correlated | +1.18% | ||
| SXI - KMT | 65% Loosely correlated | -9.90% | ||
| WTS - KMT | 64% Loosely correlated | -1.78% | ||
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