Contrasting Kennametal (NYSE:KMT) & Ebang International (NASDAQ:EBON)

Kennametal (NYSE:KMT) and Ebang International (NASDAQ:EBON) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider & Institutional Ownership

1.2% of Ebang International shares are held by institutional investors. 1.4% of Kennametal shares are held by insiders. Comparatively, 25.4% of Ebang International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Kennametal and Ebang International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kennametal	5.45%	9.12%	4.72%
Ebang International	N/A	N/A	N/A

Earnings and Valuation

This table compares Kennametal and Ebang International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kennametal	$2.05 billion	0.91	$109.32 million	$1.39	17.51
Ebang International	$5.87 million	N/A	-$20.25 million	N/A	N/A

Kennametal has higher revenue and earnings than Ebang International.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kennametal and Ebang International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kennametal	1	4	0	0	1.80
Ebang International	0	0	0	0	0.00

Kennametal currently has a consensus target price of $25.40, indicating a potential upside of 4.35%. Given Kennametal’s stronger consensus rating and higher possible upside, equities analysts clearly believe Kennametal is more favorable than Ebang International.

Volatility and Risk

Kennametal has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Ebang International has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500.

Summary

Kennametal beats Ebang International on 7 of the 10 factors compared between the two stocks.

About Kennametal

Kennametal Inc. engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure. It offers standard and custom products, including turning, milling, hole making, tooling systems, and services, as well as specialized wear components and metallurgical powders for manufacturers engaged in various industries, such as the manufacturers of transportation vehicles and components, machine tools, and light and heavy machinery; airframe and aerospace components; and energy-related components for the oil and gas industry, as well as power generation. In addition, the company provides specified product design, selection, application, and support services; and standard and custom metal cutting solutions to aerospace, general engineering, energy, and transportation customers. Further, it produces compacts, nozzles, frac seats, and custom components used in oil and gas, and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling, and road milling; tungsten carbide powders for the oil and gas, aerospace, and process industries; and ceramics used by the packaging industry for metallization of films and papers. The company provides its products under the Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD brands through its direct sales force; a network of independent and national distributors; integrated supplier channels; and through the Internet. The company was founded in 1938 and is based in Pittsburgh, Pennsylvania.

About Ebang International

Ebang International Holdings Inc., through its subsidiaries, engages in the research, design, and development of application-specific integrated circuit chips and manufacture of Bitcoin mining machines under the Ebit brand in Singapore, Hong Kong, Australia, the Bahamas, and internationally. It also provides mining machine hosting services; and engages in the development of proprietary cryptocurrency exchange platform. In addition, the company offers fiber-optic communication access devices, including multiprotocol label switching fiber-optic access network devices, multi-service access platform integrated business access devices, and wavelength-division multiplexing fiber-optic devices; and enterprise convergent terminal products, which consists gigabit passive optical network, Fiber to the Room products, passive optical network converged gateways, enterprise cloud gateway devices, industrial Internet of Things access devices, and business enterprise smart wireless access devices. It serves the blockchain and telecommunications industries. The company also operates a cross-border payment and foreign exchange platform. It sells its blockchain products directly, as well as through its website; and telecommunication products under the EBANG brand name primarily through supplier contracts. The company was incorporated in 2018 and is headquartered in Hangzhou, China.