Carrier Global Corporation (CARR) vs Trane Technologies plc (TT)

Carrier Global Corporation and Trane Technologies plc are both Building Products & Equipment companies. Trane Technologies plc is the larger, with a market value of $85.9B against $43.5B — 2.0× the size. Carrier Global Corporation has negative trailing earnings, so its P/E is not meaningful; Trane Technologies plc trades at 27.8×. Trane Technologies plc grew revenue faster over the last twelve months: 10.3% against 3.33%. Trane Technologies plc has the higher net margin (13.6% vs −7.90%) and the higher return on invested capital (21.5% vs −3.31%). Both pay a dividend; Carrier Global Corporation yields more (1.80% vs 1.04%). Across the 22 metrics below, Trane Technologies plc leads on 15 and Carrier Global Corporation on 7.

Valuation

Metric CARR TT Building Products & Equipment median
P/E n/m 27.83 23.33
P/S 1.92 3.73 2.09
P/B 4.20 9.49 2.85
Price to free cash flow 18.42 22.60 18.42
EV/EBITDA 16.37 19.63 13.29
EV/Sales 2.37 3.86 2.28
Earnings yield (4.15%) 3.59% 3.04%
Free cash flow yield 5.43% 4.43% 4.26%

Profitability

Metric CARR TT Building Products & Equipment median
Gross margin 24.64% 34.99% 31.88%
Operating margin (4.77%) 17.92% 7.18%
Net margin (7.90%) 13.56% 4.11%
Free cash flow margin 10.43% 16.52% 6.41%
Return on equity (14.26%) 36.04% 5.95%
Return on assets (5.03%) 13.92% 3.90%
Return on invested capital (3.31%) 21.46% 5.54%

Growth

Metric CARR TT Building Products & Equipment median
Revenue growth (TTM) 3.33% 10.33% 6.27%
EPS growth (last fiscal year) (72.03%) 15.48% (28.29%)
Revenue growth, 5-year CAGR 4.49% 11.35% 4.81%
Net income growth, 5-year CAGR (5.62%) 27.84% 0.00%

Health

Metric CARR TT Building Products & Equipment median
Debt to equity 1.10 0.46 0.55
Current ratio 1.00 1.12 1.83
Net debt to EBITDA 2.98 0.66 1.45

Dividend

Metric CARR TT Building Products & Equipment median
Dividend yield 1.80% 1.04% 1.37%
Payout ratio 0.67 0.29 0.28

Size

Metric CARR TT Building Products & Equipment median
Market cap 43.53b 85.90b 3.22b

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