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 Alamo Group 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 Alamo Group Inc. and Kennametal Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Alamo Group Inc. and Kennametal Inc.

Alamo Group Inc. designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. It operates through two segments, Vegetation Management and Industrial Equipment. The company offers rotary, finishing, flail, disc mowers, remote control, industrial grass, commercial and high end residential zero turn, mechanical boom, quick-attach boom, off-road chassis mounted, and reach mowers; rock removal, landscape and vegetation maintenance equipment, agricultural equipment, street sweepers, solid waste and recycling, and commercial tree care and forestry attachments equipment; and boom-mounted hedge and grass, hedgerow, agricultural seedbed preparation cultivators, rotary, and brush cutters. It also provides front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades, snow blowers, hydraulic, tractor attachments, cutting blades, tree chippers, stump grinders, mulchers, flails and debarkers, tractor- and truck-mounted mowing, and sugar cane trailers; and engineered underground construction forms. In addition, the company offers hydraulic telescoping booms, catch basin cleaners, roadway debris vacuum systems, sewer cleaners, hydro excavators, truck chassis, vacuum trucks, cleaning systems and trenchers, truck mounted, snow plows and blowers, dump bodies and spreaders, snow throwers, brooms, deicers, brine sprayers, wing systems, spreader bodies, hitches and attachments, loaders and graders, salt spreaders and truck bodies, municipal tractors and attachments, asphalt maintenance patchers, truck-mounted air vacuum, mechanical and replacement brooms, regenerative air sweepers, leaf and debris collection equipment, parking lot sweepers, truck mounted highway crash attenuator trucks, and cone safety and traffic control trucks. The company was founded in 1955 and is headquartered in Seguin, Texas.

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 Alamo Group Inc., Kennametal Inc. Stock News

As of December 9, 2025, Alamo Group Inc. had a $2.0 billion market capitalization, compared to the Machinery median of $3.0 million. Alamo Group Inc.’s stock is down 11.4% in 2025, down 0.5% in the previous five trading days and down 17.01% in the past year.

Currently, Alamo Group Inc.’s price-earnings ratio is 16.9. Alamo Group Inc.’s trailing 12-month revenue is $1.6 billion with a 7.2% net profit margin. Year-over-year quarterly sales growth most recently was 4.7%. Analysts expect adjusted earnings to reach $9.863 per share for the current fiscal year. Alamo Group Inc. currently has a 0.7% dividend yield.

As of December 9, 2025, Kennametal Inc. had a $2.1 billion market cap, putting it in the 57th percentile of all stocks. Kennametal Inc.’s stock is up 17.2% in 2025, up 0.9% in the previous five trading days and down 1.59% in the past year.

Currently, Kennametal Inc.’s price-earnings ratio is 22.8. 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 $1.463 per share for the current fiscal year. Kennametal Inc. currently has a 2.9% dividend yield.

How We Compare Alamo Group 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 Alamo Group Inc. and Kennametal Inc.’s stock grades to see how they measure up against one another.

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Alamo Group Inc. and Kennametal Inc. Stock Value Grades

Company	Ticker	Value
Alamo Group Inc.	ALG	B
Kennametal Inc.	KMT	C

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.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Alamo Group Inc. has a Value Score of 61, which is Value. Kennametal Inc. has a Value Score of 47, which is Average.

The Value Stock Winner: Alamo Group Inc.

As you can clearly see from the Value Grade breakdown above, Alamo Group Inc. is considered to have better value than Kennametal Inc.. For investors who focus solely on a company’s valuation, Alamo Group Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Alamo Group Inc. and Kennametal Inc. Growth Grades

Company	Ticker	Growth
Alamo Group Inc.	ALG	A
Kennametal Inc.	KMT	C

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Alamo Group Inc. has a Growth Score of 97, which is Very Strong. Kennametal Inc. has a Growth Score of 47, which is Average.

The Growth Grade Winner: Alamo Group Inc.

As you can clearly see from the Growth Grade breakdown above, Alamo Group Inc. has a more attractive growth grade than Kennametal Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Alamo Group Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Alamo Group Inc. and Kennametal Inc.’s Momentum Grades

Company	Ticker	Momentum
Alamo Group Inc.	ALG	D
Kennametal Inc.	KMT	B

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%.

Alamo Group Inc. has a Momentum Score of 22, which is Weak. Kennametal Inc. has a Momentum Score of 71, which is 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 Alamo Group 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.

Other Alamo Group Inc. and Kennametal Inc. Grades

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

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

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite 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 F-Score.

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 Alamo Group 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, Alamo Group Inc. or Kennametal Inc. Stock?

Overall, Alamo Group Inc. stock has a Value Score of 61, Growth Score of 97 and Momentum Score of 22.

Kennametal Inc. stock has a Value Score of 47, Growth Score of 47 and Momentum Score of 71.

Comparing Alamo Group 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.