Sifting through countless of stocks in the Machinery industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Franklin Electric Co., Inc. or Kennametal Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Franklin Electric Co., Inc. and Kennametal Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Franklin Electric Co., Inc. and Kennametal Inc.

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Water Systems, Energy Systems, and Distribution segments. The Water Systems segment offers motors, pumps, water treatment systems, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater in a range of residential, agricultural, municipal, and industrial applications; and electronic drives and controls for the motors, which control functionality and provide protection from various hazards, such as electrical surges, over-heating, and dry wells or dry tanks. Its Energy Systems segment produces and markets pumps, motors, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in energy system applications; and components between the tanks and the dispensers, including submersible pumps, station hardware, piping, and corrosion control systems. This segment serves other energy markets, such as power reliability systems, including intelligent electronic devices that are designed for online monitoring for the power utility, hydroelectric, rail, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells its products to wholesale and retail distributors, specialty distributors, and industrial and petroleum equipment distributors, as well as to oil and utility companies, and original equipment manufacturers. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.

Kennametal Inc. engages in development and application of tungsten carbides, ceramics, and hard materials and solutions worldwide. It operates through two segments, Metal Cutting and Infrastructure. The Metal Cutting segment offers milling, hole making, turning, threading, and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships, and various types of industrial equipment 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 digitally. Its Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and metallurgical powders, such as 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; high temperature critical wear components, tungsten penetrators, and armor solutions for aerospace and defense; and ceramics used by the packaging industry for metallization of films and papers under the Kennametal brand through a direct sales force and distributors. The company was founded in 1938 and is based in Pittsburgh, Pennsylvania.

Latest Machinery and Franklin Electric Co., Inc., Kennametal Inc. Stock News

As of January 14, 2026, Franklin Electric Co., Inc. had a $4.4 billion market capitalization, compared to the Machinery median of $3.4 million. Franklin Electric Co., Inc.’s stock is up 4.4% in 2026, down 0.7% in the previous five trading days and up 3.57% in the past year.

Currently, Franklin Electric Co., Inc.’s price-earnings ratio is 32.3. Franklin Electric Co., Inc.’s trailing 12-month revenue is $2.1 billion with a 6.7% net profit margin. Year-over-year quarterly sales growth most recently was 9.5%. Analysts expect adjusted earnings to reach $4.158 per share for the current fiscal year. Franklin Electric Co., Inc. currently has a 1.1% dividend yield.

As of January 14, 2026, Kennametal Inc. had a $2.5 billion market cap, putting it in the 58th percentile of all stocks. Kennametal Inc.’s stock is up 21.4% in 2026, up 14.9% in the previous five trading days and up 39.66% in the past year.

Currently, Kennametal Inc.’s price-earnings ratio is 27.5. Kennametal Inc.’s trailing 12-month revenue is $2.0 billion with a 4.8% net profit margin. Year-over-year quarterly sales growth most recently was 3.3%. Analysts expect adjusted earnings to reach $1.645 per share for the current fiscal year. Kennametal Inc. currently has a 2.4% dividend yield.

How We Compare Franklin Electric Co., Inc. and Kennametal Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Franklin Electric Co., Inc. and Kennametal Inc.’s stock grades to see how they measure up against one another.

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Franklin Electric Co., Inc. and Kennametal Inc.’s Quality Grades

Company	Ticker	Quality
Franklin Electric Co., Inc.	FELE	A
Kennametal Inc.	KMT	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Franklin Electric Co., Inc. has a Quality Score of 86, which is Very Strong. Kennametal Inc. has a Quality Score of 83, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Franklin Electric Co., Inc. and Kennametal Inc. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Franklin Electric Co., Inc. and Kennametal Inc.’s Momentum Grades

Company	Ticker	Momentum
Franklin Electric Co., Inc.	FELE	C
Kennametal Inc.	KMT	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Franklin Electric Co., Inc. has a Momentum Score of 41, which is Average. Kennametal Inc. has a Momentum Score of 86, which is Very Strong.

The Momentum Grade Winner: Kennametal Inc.

As you can clearly see from the Momentum Grade breakdown above, Kennametal Inc. is considered to have stronger momentum compared to Franklin Electric Co., Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Kennametal Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Franklin Electric Co., Inc. and Kennametal Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Franklin Electric Co., Inc.	FELE	D
Kennametal Inc.	KMT	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Franklin Electric Co., Inc. has a Earnings Estimate Score of 38, which is Negative. Kennametal Inc. has a Earnings Estimate Score of 73, which is Positive.

The Earnings Estimate Revisions Grade Winner: Kennametal Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Kennametal Inc. has a better Earnings Estimate Revisions Grade than Franklin Electric Co., Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Kennametal Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Franklin Electric Co., Inc. and Kennametal Inc. Grades

In addition to Momentum, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Growth.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Franklin Electric Co., Inc. and Kennametal Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Franklin Electric Co., Inc. or Kennametal Inc. Stock?

Overall, Franklin Electric Co., Inc. stock has a Momentum Score of 41, Estimate Revisions Score of 38 and Quality Score of 86.

Kennametal Inc. stock has a Momentum Score of 86, Estimate Revisions Score of 73 and Quality Score of 83.

Comparing Franklin Electric Co., Inc. and Kennametal Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.