Madison Air Solutions Corporation (MAIR) vs Trane Technologies plc (TT)

Madison Air Solutions 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 $10.8B — 8.0× the size. Trane Technologies plc trades at the lower P/E: 27.8× against 48.8×. Trane Technologies plc has the higher net margin (13.6% vs 4.75%) and the higher return on invested capital (21.5% vs 5.83%). Across the 19 metrics below, Trane Technologies plc leads on 10 and Madison Air Solutions Corporation on 9.

Valuation

Metric MAIR TT Building Products & Equipment median
P/E 48.77 27.83 23.33
P/S 2.94 3.73 2.09
P/B 2.76 9.49 2.85
Price to free cash flow 14.72 22.60 18.42
EV/EBITDA 16.26 19.63 13.29
EV/Sales 3.76 3.86 2.28
Earnings yield 2.05% 3.59% 3.04%
Free cash flow yield 6.79% 4.43% 4.26%

Profitability

Metric MAIR TT Building Products & Equipment median
Gross margin 38.43% 34.99% 31.88%
Operating margin 17.56% 17.92% 7.18%
Net margin 4.75% 13.56% 4.11%
Free cash flow margin 19.99% 16.52% 6.41%
Return on equity 0.00% 36.04% 5.95%
Return on assets 3.90% 13.92% 3.90%
Return on invested capital 5.83% 21.46% 5.54%

Growth

Metric MAIR TT Building Products & Equipment median
Revenue growth (TTM) — 10.33% 6.27%
EPS growth (last fiscal year) (44.63%) 15.48% (28.29%)
Revenue growth, 5-year CAGR — 11.35% 4.81%
Net income growth, 5-year CAGR — 27.84% 0.00%

Health

Metric MAIR TT Building Products & Equipment median
Debt to equity 0.84 0.46 0.55
Current ratio 1.82 1.12 1.83
Net debt to EBITDA 7.54 0.66 1.45

Dividend

Metric MAIR TT Building Products & Equipment median
Dividend yield — 1.04% 1.37%
Payout ratio — 0.29 0.28

Size

Metric MAIR TT Building Products & Equipment median
Market cap 10.75b 85.90b 3.22b

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