Trane Technologies (TT) and Its Rivals Critical Contrast

Trane Technologies (NYSE:TT) is one of 94 public companies in the “Building Products” industry, but how does it compare to its peers? We will compare Trane Technologies to related companies based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, institutional ownership and risk.

Institutional & Insider Ownership

83.0% of Trane Technologies shares are held by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are held by institutional investors. 0.4% of Trane Technologies shares are held by insiders. Comparatively, 10.3% of shares of all “Building Products” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Trane Technologies pays an annual dividend of $4.20 per share and has a dividend yield of 0.9%. Trane Technologies pays out 31.8% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 6.7% and pay out 37.0% of their earnings in the form of a dividend. Trane Technologies has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Trane Technologies and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trane Technologies	1	2	10	2	2.87
Trane Technologies Competitors	692	3764	4886	220	2.48

Trane Technologies presently has a consensus target price of $520.07, indicating a potential upside of 12.47%. As a group, “Building Products” companies have a potential upside of 19.77%. Given Trane Technologies’ peers higher probable upside, analysts plainly believe Trane Technologies has less favorable growth aspects than its peers.

Risk and Volatility

Trane Technologies has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Trane Technologies’ peers have a beta of 1.05, meaning that their average share price is 5% more volatile than the S&P 500.

Profitability

This table compares Trane Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trane Technologies	13.28%	35.72%	13.65%
Trane Technologies Competitors	3.30%	43.64%	5.06%

Valuation & Earnings

This table compares Trane Technologies and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Trane Technologies	$21.32 billion	$2.92 billion	35.03
Trane Technologies Competitors	$3.99 billion	$4.73 billion	43.98

Trane Technologies has higher revenue, but lower earnings than its peers. Trane Technologies is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Trane Technologies beats its peers on 9 of the 15 factors compared.

About Trane Technologies

Trane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, custom, and custom and transport refrigeration in Ireland and internationally. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps, auxiliary power units; chillers; coils and condensers; gensets; dehumidifiers; ductless; furnaces; home automation products; humidifiers; indoor air quality assessments and related products; large and light commercial unitary products; refrigerant reclamation products; thermostats/controls; transport heater products; variable refrigerant flow products; and water source heat pumps. The company also provides building management, telematic, control, energy efficiency and infrastructure program, geothermal, thermal energy, thermostats, rate chambers, package heating and cooling, temporary heating and cooling, and unitary systems; bus, rail, and multi-pipe heating, ventilation, and air conditioning systems; and container, diesel-powered, truck, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration and air filtration systems, as well as aftermarket and OEM parts and supplies. In addition, it offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. It markets and sells its products under the Trane and Thermo King brands through sales offices, distributors, and dealers; and through sales and service companies with a supporting chain of distributors. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. Trane Technologies plc was founded in 1885 and is headquartered in Swords, Ireland.