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GRC vs KMT
Which Stock Would AI Choose? The Gorman-Rupp Company (GRC) vs. Kennametal Inc. (KMT) Stock Comparison
Key Takeaways
- GRC delivered record third-quarter 2026 net sales and earnings that beat analyst estimates, while KMT posted explosive growth driven largely by temporary tungsten-price timing that may not repeat.
- Both are industrial manufacturers, but they serve different niches: GRC makes pumps and pumping systems, while KMT supplies tungsten-carbide cutting tools and wear-resistant materials.
- GRC has raised its dividend for 54 consecutive years, signaling durable cash generation, whereas KMT's recent free cash flow turned negative because of rising tungsten-driven working capital.
- GRC's backlog remains elevated and analyst consensus leans "Buy," while KMT carries a "Sell" consensus as the market questions the sustainability of its margin surge.
- Tickeron AI Verdict: GRC — its steadier trend, consistent earnings quality, and disciplined balance-sheet improvement give it the relative edge over KMT in the current market environment.
- Explore GRC Major News and GRC Today's Price Move, as well as KMT Major News and KMT Today's Price Move, for the latest developments on each name.
- Discover curated, market-ready strategies on the Trending AI Robots page.
Introduction
Industrial stocks often trade on the same macro winds, yet two companies can diverge sharply in quality, momentum, and risk. This stock comparison pairs The Gorman-Rupp Company (GRC), a pump manufacturer with a decades-long dividend-growth record, against Kennametal Inc. (KMT), a global leader in tungsten-carbide tooling and wear-resistant solutions. Both attract investors who track relative performance and market positioning across the industrial machinery sector, but their recent drivers could not be more different. GRC's results reflect steady operational execution, while KMT's latest numbers were amplified by a sharp swing in tungsten pricing. This comparison examines which profile looks better positioned in the current environment.
GRC Overview and Recent Performance
The Gorman-Rupp Company (GRC) designs, manufactures, and sells pumps and pumping systems used in water, wastewater, construction, agriculture, fire suppression, and other liquid-handling applications. In recent weeks, the company reported record third-quarter net sales of $193.3 million, up 11.8% year over year, along with net income of $22.7 million, or $0.86 per share — both above analyst consensus. Management also raised the quarterly dividend by 5.3% to $0.20 per share, marking the 54th consecutive year of increases.
Sentiment has been supported by an elevated order backlog and ongoing debt reduction following the company's 2022 Fill-Rite acquisition. Data-center-related demand, where pumps help cool server equipment, has emerged as a modest but growing tailwind. Shares have outperformed the broader market over the trailing year, though they remain below their 52-week high. The key considerations for investors are the company's still-meaningful leverage and its exposure to cyclical industrial end markets.
KMT Overview and Recent Performance
Kennametal Inc. (KMT) develops tungsten carbides, ceramics, and hard materials, operating through its Metal Cutting and Infrastructure segments. Its most recent fiscal-quarter results showed a sharp acceleration: sales rose 42.7% year over year to $736.6 million, and adjusted earnings per share (EPS) reached $2.96, up from $0.34 a year earlier. Adjusted operating margin expanded dramatically, helped by favorable timing between raw-material pricing and costs tied to a historic surge in tungsten prices.
However, this strength carries caveats. A large share of the profit uplift stemmed from pricing and tungsten-cost timing rather than core volume growth, and free cash flow turned negative as inventories tied to higher tungsten values climbed. With tungsten prices having retreated from their highs in recent months, the market is weighing whether the margin surge can be sustained. Analysts' consensus rating on KMT remains cautious, and the stock trades well below its 52-week high, reflecting uncertainty around normalized earnings power.
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Head-to-Head Comparison
The two companies differ most clearly in how their recent earnings were generated. GRC's growth is anchored in steady demand, a rising backlog, and gradual margin improvement from pricing and cost discipline — factors that read as repeatable. KMT's surge, by contrast, was heavily influenced by a tungsten-price shock that lifted revenue and margins but also strained working capital and now appears to be unwinding as commodity prices normalize.
Their sector exposure also diverges. GRC is tied to municipal water infrastructure, agriculture, construction, and data-center cooling — end markets with a relatively defensive, non-discretionary character. KMT is more directly exposed to cyclical manufacturing activity across aerospace and defense, energy, earthworks, and transportation, making its results more sensitive to industrial production and commodity cycles.
On the balance sheet, GRC is steadily deleveraging after an acquisition, while KMT recently raised liquidity to manage tungsten-driven working capital needs. Dividend investors may note GRC's 54-year streak versus KMT's higher current yield, which reflects a lower valuation and greater perceived uncertainty. Risk profiles differ accordingly: GRC faces leverage and industrial cyclicality, while KMT faces raw-material volatility and questions about the durability of its pricing power.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor GRC in the current environment. Its earnings quality appears more consistent, its backlog provides greater forward visibility, and its disciplined deleveraging supports a steadier trend profile. By comparison, KMT is generating headline-beating results that depend significantly on tungsten-price timing — a catalyst that is inherently less stable and already showing signs of reversal. While both names carry risk, GRC's combination of durable demand, margin consistency, and a long dividend-growth record gives it the stronger relative market positioning today. This assessment is probabilistic rather than definitive and reflects current conditions, which can shift as new data emerges.
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 GRC is a Hold and KMT is a Hold.
GRC in -8.23% downward trend, declining for three consecutive days on November 06, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GRC declined for three days, in 182 of 284 cases, the price declined further within the following month. The odds of a continued downward trend are 64%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GRC as a result. In 47 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 55%.
The Moving Average Convergence Divergence Histogram (MACD) for GRC turned negative on November 05, 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 45 similar instances when the indicator turned negative. In 27 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 60%.
GRC moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
The Aroon Indicator for GRC entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +4.21% 3-day Advance, the price is estimated to grow further. Considering data from situations where GRC advanced for three days, in 199 of 289 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
GRC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 19 (best 1 - 100 worst), pointing to outstanding 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 29 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 51 (best 1 - 100 worst), indicating steady price growth. GRC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 57 (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 77 (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 (4.054) is normal, around the industry mean (3.843). P/E Ratio (28.591) is within average values for comparable stocks, (36.971). Projected Growth (PEG Ratio) (1.881) is also within normal values, averaging (1.879). Dividend Yield (0.011) settles around the average of (0.032) among similar stocks. P/S Ratio (2.715) is also within normal values, averaging (189.487).
KMT in downward trend: 10-day moving average broke below 50-day moving average on October 27, 2026
The 10-day moving average for KMT crossed bearishly below the 50-day moving average on October 27, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 69%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 03, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KMT as a result. In 58 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
The Moving Average Convergence Divergence Histogram (MACD) for KMT turned negative on October 14, 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 52 similar instances when the indicator turned negative. In 32 of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
KMT moved below its 50-day moving average on November 04, 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%.
The Aroon Indicator for KMT entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.39% 3-day Advance, the price is estimated to grow further. Considering data from situations where KMT advanced for three days, in 194 of 309 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.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 39 (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 (1.119) is normal, around the industry mean (3.143). KMT has a moderately low P/E Ratio (5.122) as compared to the industry average of (22.467). KMT's Projected Growth (PEG Ratio) (0.050) is slightly lower than the industry average of (1.020). KMT has a moderately high Dividend Yield (0.035) as compared to the industry average of (0.018). P/S Ratio (0.976) is also within normal values, averaging (2.217).
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 Price Growth Rating for this company is 77 (best 1 - 100 worst), indicating slightly worse than average 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 96 (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 68, placing this stock worse than average.
GRC | KMT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 73 | 59 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 77 Overvalued | 39 Fair valued | |
PROFIT vs RISK RATING 1..100 | 29 | 100 | |
SMR RATING 1..100 | 57 | 40 | |
PRICE GROWTH RATING 1..100 | 51 | 77 | |
P/E GROWTH RATING 1..100 | 19 | 96 | |
SEASONALITY SCORE 1..100 | n/a | 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 (39) in the Industrial Machinery industry is somewhat better than the same rating for GRC (77). This means that KMT’s stock grew somewhat faster than GRC’s over the last 12 months.
GRC's Profit vs Risk Rating (29) in the Industrial Machinery industry is significantly better than the same rating for KMT (100). This means that GRC’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 GRC (57). This means that KMT’s stock grew similarly to GRC’s over the last 12 months.
GRC's Price Growth Rating (51) in the Industrial Machinery industry is in the same range as KMT (77). This means that GRC’s stock grew similarly to KMT’s over the last 12 months.
GRC's P/E Growth Rating (19) in the Industrial Machinery industry is significantly better than the same rating for KMT (96). This means that GRC’s stock grew significantly faster than KMT’s over the last 12 months.
| GRC | KMT | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 73% |
| Stochastic ODDS (%) | 2 days ago 70% | 2 days ago 70% |
| Momentum ODDS (%) | 2 days ago 55% | 2 days ago 64% |
| MACD ODDS (%) | 2 days ago 60% | 2 days ago 62% |
| TrendWeek ODDS (%) | 2 days ago 63% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 65% | 2 days ago 65% |
| Advances ODDS (%) | 9 days ago 69% | 16 days ago 63% |
| Declines ODDS (%) | 6 days ago 64% | 6 days ago 64% |
| BollingerBands ODDS (%) | 2 days ago 64% | 2 days ago 64% |
| Aroon ODDS (%) | 2 days ago 61% | 2 days ago 67% |
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).
GRC’s FA Score shows that 2 FA rating(s) are green while KMT’s FA Score has 0 green FA rating(s).
- GRC’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.
GRC’s TA Score shows that 3 TA indicator(s) are bullish while KMT’s TA Score has 4 bullish TA indicator(s).
- GRC’s TA Score: 3 bullish, 5 bearish.
- KMT’s TA Score: 4 bullish, 6 bearish.
Price Growth
GRC (@Industrial Machinery) experienced а -6.36% price change this week, while KMT (@Tools & Hardware) price change was -20.60% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +2.87%. For the same industry, the average monthly price growth was -8.89%, and the average quarterly price growth was -16.20%.
The average weekly price growth across all stocks in the @Tools & Hardware industry was -2.24%. For the same industry, the average monthly price growth was +1.84%, and the average quarterly price growth was +5.78%.
Reported Earning Dates
GRC is expected to report earnings on Jan 29, 2027.
KMT is expected to report earnings on Feb 10, 2027.
Industries' Descriptions
@Industrial Machinery (+2.87% 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 (-2.24% 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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GRC and
Correlation & Price change
A.I.dvisor indicates that over the last year, GRC has been closely correlated with LECO. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if GRC jumps, then LECO 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% | -0.62% | ||
| HLIO - KMT | 70% Closely correlated | -2.99% | ||
| MIDD - KMT | 69% Closely correlated | +0.20% | ||
| TNC - KMT | 68% Closely correlated | +1.37% | ||
| SXI - KMT | 65% Loosely correlated | -0.51% | ||
| WTS - KMT | 64% Loosely correlated | -0.09% | ||
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