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FELE vs KMT
Which Stock Would AI Choose? Franklin Electric (FELE) vs. Kennametal (KMT) Stock Comparison
Key Takeaways
- Franklin Electric (FELE) is a diversified water and fuel pumping systems manufacturer with a market cap of approximately $4.66 billion and a track record of 34 consecutive years of dividend increases.
- Kennametal (KMT) is a global industrial tooling and wear-resistant solutions provider with a market cap of about $2.56 billion, currently executing an ambitious $125 million cost-savings restructuring program.
- FELE has demonstrated steadier operational momentum with 5.4% revenue growth in its most recent full fiscal year, while KMT posted its first quarter of organic growth in two years during fiscal Q1 2026, signaling a potential turnaround.
- KMT offers a significantly higher dividend yield at approximately 2.25% compared to FELE's 1.06%, though FELE's dividend growth streak of 34 years reflects exceptional consistency.
- KMT has outperformed FELE on a trailing one-year basis (roughly +37% vs. +12%), but recent weeks have seen both stocks pull back amid broader market volatility.
- FELE trades at a notably higher valuation multiple (forward P/E of approximately 21.5) compared to KMT (trailing P/E of approximately 20), reflecting divergent market expectations for earnings growth and business stability.
Introduction
Investors navigating the industrial sector often encounter two distinct types of companies: those anchored by steady, essential-infrastructure demand and those tied to cyclical manufacturing activity. FELE (Franklin Electric Co., Inc.) and KMT (Kennametal Inc.) represent precisely this contrast. Franklin Electric operates in water and fuel pumping systems — a relatively defensive corner of industrials — while Kennametal supplies metal-cutting tools and wear-resistant components to cyclical end markets such as aerospace, energy, and transportation. This stock comparison examines how these two companies differ in business model, recent performance, growth trajectory, and risk profile, offering traders and investors a data-driven framework for evaluating their relative market positioning.
FELE Overview and Recent Performance
FELE, headquartered in Fort Wayne, Indiana, designs, manufactures, and distributes water and fuel pumping systems used across residential, agricultural, municipal, and industrial applications. The company operates through three segments: Water Systems (approximately 56% of revenue), Distribution (29%), and Energy Systems (13%). This diversification across end markets — including residential (44% of revenue), municipal and utility (15%), energy (14%), agriculture (12%), and commercial/industrial (15%) — provides Franklin Electric with a degree of revenue stability that many industrial peers lack.
On the financial front, FELE reported full-year 2025 sales of $2.13 billion, representing a 5.4% year-over-year increase, while adjusted earnings per share (EPS) rose 6% to $4.14. Operating income grew 10% to $269 million, and the company generated strong free cash flow of $196 million. In recent months, FELE has continued to demonstrate momentum: its Q1 2026 results delivered 10% sales growth and 24% adjusted EPS growth, with all three segments contributing. The company raised its full-year 2026 guidance to sales of $2.21 billion to $2.29 billion and adjusted EPS of $4.50 to $4.70. However, investor sentiment has been mixed in recent weeks; after hitting a 52-week high of $115.82, shares pulled back to the $105 range, reflecting concerns about macroeconomic headwinds including elevated interest rates and a softer housing market. The company's 34-year streak of consecutive dividend increases — most recently raising its quarterly payout 5.7% to $0.28 per share — underscores management's confidence in long-term cash generation.
KMT Overview and Recent Performance
KMT, based in Pittsburgh, Pennsylvania, is a leading manufacturer of tungsten carbide metal-cutting tooling and wear-resistant engineered components and coatings. The company serves diverse end markets — including aerospace and defense, general engineering, energy, transportation, and earthworks — through its two operating segments: Metal Cutting and Infrastructure. Unlike Franklin Electric's relatively stable demand profile, Kennametal's revenue is closely tied to global industrial production cycles and manufacturing activity levels.
Fiscal 2025 was a challenging year for KMT: sales declined 4% to $1.97 billion, and adjusted EPS fell to $1.34 from $1.50 in the prior year, as the company contended with persistent market softness, tariff impacts, and foreign exchange headwinds. However, a notable inflection emerged in the first quarter of fiscal 2026, when KMT posted 3% organic sales growth — its first quarter of organic growth in two years — driven by share gains in Aerospace & Defense (up 20% year-over-year) and Earthworks. Adjusted EPS of $0.34 handily beat Wall Street expectations, and the stock surged over 18% following the release. Management subsequently raised full-year guidance to sales of $2.10 billion to $2.17 billion and adjusted EPS of $1.35 to $1.65. The company is mid-way through an aggressive restructuring program targeting $125 million in annualized pre-tax savings by June 2027, with approximately $65 million already achieved. In recent weeks, KMT shares have pulled back from a 52-week high of $43.81 to the $33–$34 range, giving back some of the post-earnings gains as broader industrial sentiment softened. The company's quarterly dividend of $0.20 per share yields approximately 2.25%, supported by a consistent payout record dating back to its 1967 NYSE listing.
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Head-to-Head Comparison
When comparing FELE and KMT side by side, several structural differences emerge. Franklin Electric's business is anchored to essential water infrastructure — a relatively non-discretionary demand driver that lends itself to steadier revenue streams across economic cycles. Kennametal, by contrast, derives the majority of its revenue from metal-cutting tools whose demand fluctuates with industrial production, capital expenditure (CapEx) cycles, and original equipment manufacturer (OEM) output levels, particularly in transportation and general engineering.
On growth trajectory, FELE has delivered consistent mid-single-digit revenue expansion supported by acquisitions, new product introductions (over 35 products launched with a projected $160 million in cumulative revenue by year three), and pricing discipline. KMT's growth story is more turnaround-oriented: after two years of organic revenue declines, the return to growth in late 2025 signaled that restructuring efforts and end-market improvements — especially in Aerospace & Defense — may be gaining traction. However, KMT's free cash flow (FOCF) has been uneven, turning negative in its most recent quarter due to inventory build, whereas FELE has maintained three consecutive years of cash conversion above 120% of net income.
From a valuation standpoint, FELE trades at a forward P/E of approximately 21.5, a premium reflecting its steadier earnings profile and 34-year dividend growth track record. KMT carries a trailing P/E of roughly 20 but offers a higher dividend yield (2.25% vs. 1.06%), which may appeal to income-oriented investors willing to accept greater cyclicality. Risk factors also diverge: FELE faces exposure to housing market weakness and tariff costs affecting its Energy Systems segment, while KMT contends with persistent softness in European transportation markets and the potential for tariff escalation to inflate input costs across its Metal Cutting segment. On market sentiment, both stocks have experienced volatility in recent weeks — FELE pulled back from its 52-week high following Q2 2026 earnings, and KMT sold off sharply from $43 to $33, suggesting that near-term caution prevails across the industrial sector.
Tickeron AI Verdict
Based on the observable factors analyzed in this comparison, Tickeron's AI-driven analytical framework would likely express a modest preference for FELE in the current environment, though the case is nuanced. Franklin Electric's steadier revenue trajectory, stronger free cash flow generation, multi-decade dividend growth record, and diversified end-market exposure across essential water infrastructure provide a more consistent trend profile — a characteristic that AI pattern-recognition models tend to favor when market volatility is elevated. The company's raised 2026 guidance and robust new product pipeline offer identifiable catalysts, while its beta of 1.03 suggests price movements that are relatively aligned with the broader market. That said, KMT presents a compelling turnaround narrative: its first organic growth in two years, accelerating restructuring savings, and strong Aerospace & Defense momentum are precisely the kind of inflection signals that AI models are designed to detect. KMT's higher beta of 1.35 and greater sensitivity to industrial cycles could present more asymmetric opportunity if manufacturing activity accelerates, but also entail more downside risk if macro conditions deteriorate. The AI verdict, therefore, leans toward FELE for stability and trend consistency, while acknowledging that KMT's cyclical upside may appeal to traders with a higher risk tolerance and a conviction view on industrial 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 FELE is a Hold and KMT is a Hold.
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 undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
FELE’s FA Score shows that 1 FA rating(s) are green whileKMT’s FA Score has 1 green FA rating(s).
- FELE’s FA Score: 1 green, 4 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.
FELE’s TA Score shows that 3 TA indicator(s) are bullish while KMT’s TA Score has 4 bullish TA indicator(s).
- FELE’s TA Score: 3 bullish, 5 bearish.
- KMT’s TA Score: 4 bullish, 5 bearish.
Price Growth
FELE (@Industrial Machinery) experienced а -0.82% price change this week, while KMT (@Tools & Hardware) price change was -3.58% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -1.07%. For the same industry, the average monthly price growth was -11.16%, and the average quarterly price growth was -5.53%.
The average weekly price growth across all stocks in the @Tools & Hardware industry was -0.29%. For the same industry, the average monthly price growth was -3.22%, and the average quarterly price growth was +8.93%.
Reported Earning Dates
FELE is expected to report earnings on Oct 27, 2026.
KMT is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Industrial Machinery (-1.07% 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 (-0.29% 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.
| FELE | KMT | FELE / KMT | |
| Capitalization | 4.63B | 2.59B | 179% |
| EBITDA | 285M | 360M | 79% |
| Gain YTD | 10.221 | 20.813 | 49% |
| P/E Ratio | 30.09 | 19.08 | 158% |
| Revenue | 2.21B | 2.14B | 104% |
| Total Cash | 97.3M | 107M | 91% |
| Total Debt | 308M | 660M | 47% |
FELE | KMT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 5 | 17 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 46 Fair valued | 6 Undervalued | |
PROFIT vs RISK RATING 1..100 | 46 | 88 | |
SMR RATING 1..100 | 66 | 71 | |
PRICE GROWTH RATING 1..100 | 49 | 50 | |
P/E GROWTH RATING 1..100 | 28 | 42 | |
SEASONALITY SCORE 1..100 | 65 | 85 |
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 (6) in the Industrial Machinery industry is somewhat better than the same rating for FELE (46). This means that KMT’s stock grew somewhat faster than FELE’s over the last 12 months.
FELE's Profit vs Risk Rating (46) in the Industrial Machinery industry is somewhat better than the same rating for KMT (88). This means that FELE’s stock grew somewhat faster than KMT’s over the last 12 months.
FELE's SMR Rating (66) in the Industrial Machinery industry is in the same range as KMT (71). This means that FELE’s stock grew similarly to KMT’s over the last 12 months.
FELE's Price Growth Rating (49) in the Industrial Machinery industry is in the same range as KMT (50). This means that FELE’s stock grew similarly to KMT’s over the last 12 months.
FELE's P/E Growth Rating (28) in the Industrial Machinery industry is in the same range as KMT (42). This means that FELE’s stock grew similarly to KMT’s over the last 12 months.
| FELE | KMT | |
|---|---|---|
| RSI ODDS (%) | 6 days ago 59% | N/A |
| Stochastic ODDS (%) | 4 days ago 66% | 4 days ago 67% |
| Momentum ODDS (%) | 4 days ago 53% | 4 days ago 66% |
| MACD ODDS (%) | 4 days ago 54% | 4 days ago 58% |
| TrendWeek ODDS (%) | 4 days ago 54% | 4 days ago 63% |
| TrendMonth ODDS (%) | 4 days ago 56% | 4 days ago 64% |
| Advances ODDS (%) | 11 days ago 61% | 7 days ago 61% |
| Declines ODDS (%) | 5 days ago 56% | 5 days ago 66% |
| BollingerBands ODDS (%) | 4 days ago 47% | 4 days ago 67% |
| Aroon ODDS (%) | 4 days ago 52% | 4 days ago 71% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| FFOG | 47.87 | 1.03 | +2.20% |
| Franklin Focused Dynamic Growth ETF | |||
| BGIG | 36.52 | 0.08 | +0.22% |
| Bahl & Gaynor Income Growth ETF | |||
| PCLO | 24.91 | 0.04 | +0.14% |
| Virtus SEIX AAA Private Credit CLO ETF | |||
| DRKY | 19.72 | N/A | -0.01% |
| VistaShares Target 15 DRUKMacro Dis ETF | |||
| PUI | 45.56 | -0.12 | -0.27% |
| Invesco Dorsey Wright Utilities Momt ETF | |||
FELE and
Correlation & Price change
A.I.dvisor indicates that over the last year, FELE has been closely correlated with KMT. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if FELE jumps, then KMT could also see price increases.
| Ticker / NAME | Correlation To FELE | 1D Price Change % | ||
|---|---|---|---|---|
| FELE | 100% | +1.21% | ||
| KMT - FELE | 72% Closely correlated | +1.95% | ||
| LECO - FELE | 70% Closely correlated | +4.43% | ||
| DCI - FELE | 70% Closely correlated | +1.71% | ||
| TKR - FELE | 67% Closely correlated | +1.06% | ||
| RBC - FELE | 65% Loosely correlated | -1.88% | ||
More | ||||
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% | +1.95% | ||
| HLIO - KMT | 70% Closely correlated | +0.26% | ||
| MIDD - KMT | 69% Closely correlated | +0.20% | ||
| TNC - KMT | 68% Closely correlated | +1.63% | ||
| SXI - KMT | 65% Loosely correlated | +3.22% | ||
| WTS - KMT | 64% Loosely correlated | +0.49% | ||
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