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 $96.8B against $45.3B — 2.1× the size. Trane Technologies plc trades at the lower P/E: 34.5× against 38.9×. Trane Technologies plc grew revenue faster over the last twelve months: 7.03% against −1.58%. Trane Technologies plc has the higher net margin (13.3% vs 5.52%) and the higher return on invested capital (20.9% vs 4.47%). Both pay a dividend; Carrier Global Corporation yields more (1.30% vs 1.17%). Across the 23 metrics below, Trane Technologies plc leads on 16 and Carrier Global Corporation on 7.

Valuation

Metric CARR TT Building Products & Equipment median
P/E 38.88 34.48 24.54
P/S 2.11 4.53 2.00
P/B 3.47 11.64 3.02
Price to free cash flow 24.21 28.20 18.49
EV/EBITDA 19.05 23.75 12.63
EV/Sales 2.59 4.68 2.14
Earnings yield 2.57% 2.90% 2.74%
Free cash flow yield 4.13% 3.55% 3.58%

Profitability

Metric CARR TT Building Products & Equipment median
Gross margin 24.34% 35.39% 29.19%
Operating margin 7.80% 17.94% 6.84%
Net margin 5.52% 13.28% 4.05%
Free cash flow margin 8.72% 16.06% 8.72%
Return on equity 8.57% 35.74% 9.28%
Return on assets 3.22% 13.13% 2.88%
Return on invested capital 4.47% 20.85% 5.16%

Growth

Metric CARR TT Building Products & Equipment median
Revenue growth (TTM) (1.58%) 7.03% 3.11%
EPS growth (last fiscal year) (72.03%) 15.48% —
Revenue growth, 5-year CAGR 4.49% 11.35% 5.37%
Net income growth, 5-year CAGR (5.62%) 27.84% 0.00%

Health

Metric CARR TT Building Products & Equipment median
Debt to equity 0.89 0.53 0.43
Current ratio 1.02 1.07 1.82
Net debt to EBITDA 2.98 0.66 0.98

Dividend

Metric CARR TT Building Products & Equipment median
Dividend yield 1.30% 1.17% 1.20%
Payout ratio 0.28 0.35 0.04

Size

Metric CARR TT Building Products & Equipment median
Market cap 45.33b 96.79b 1.18b

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