Head to Head Survey: Apogee Enterprises (NASDAQ:APOG) & Trane Technologies (NYSE:TT)

Apogee Enterprises (NASDAQ:APOG) and Trane Technologies (NYSE:TT) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Profitability

This table compares Apogee Enterprises and Trane Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apogee Enterprises	4.88%	14.72%	6.67%
Trane Technologies	13.28%	35.72%	13.65%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Apogee Enterprises and Trane Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apogee Enterprises	0	2	2	0	2.50
Trane Technologies	1	2	11	1	2.80

Apogee Enterprises currently has a consensus price target of $70.50, suggesting a potential upside of 81.98%. Trane Technologies has a consensus price target of $521.50, suggesting a potential upside of 16.92%. Given Apogee Enterprises’ higher probable upside, equities research analysts clearly believe Apogee Enterprises is more favorable than Trane Technologies.

Valuation & Earnings

This table compares Apogee Enterprises and Trane Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apogee Enterprises	$1.40 billion	0.58	$54.13 million	$3.19	12.14
Trane Technologies	$21.32 billion	4.60	$2.92 billion	$13.20	33.79

Trane Technologies has higher revenue and earnings than Apogee Enterprises. Apogee Enterprises is trading at a lower price-to-earnings ratio than Trane Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

Apogee Enterprises pays an annual dividend of $1.08 per share and has a dividend yield of 2.8%. Trane Technologies pays an annual dividend of $4.20 per share and has a dividend yield of 0.9%. Apogee Enterprises pays out 33.9% of its earnings in the form of a dividend. Trane Technologies pays out 31.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Apogee Enterprises has raised its dividend for 14 consecutive years and Trane Technologies has raised its dividend for 5 consecutive years. Apogee Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

94.1% of Apogee Enterprises shares are owned by institutional investors. Comparatively, 83.0% of Trane Technologies shares are owned by institutional investors. 2.0% of Apogee Enterprises shares are owned by company insiders. Comparatively, 0.4% of Trane Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Apogee Enterprises has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Trane Technologies has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Summary

Trane Technologies beats Apogee Enterprises on 13 of the 18 factors compared between the two stocks.

About Apogee Enterprises

Apogee Enterprises, Inc. provides architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, finishes, and installs custom glass and aluminum window, curtainwall, storefront, and entrance systems for the exterior of buildings primarily in the non-residential construction sectors. The Architectural Glass segment provides a range of high-performance glass products for use in windows, curtainwall, storefront, and entrance systems. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. The LSO segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets. The company’s products and services are primarily used in commercial buildings, such as office buildings, hotels, and retail centers; institutional buildings comprising education facilities, health care facilities, and government buildings; transportation facilities, such as airports and transit terminals, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, distributors, and glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, as well as independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.

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.