Owens Corning Inc (OC) vs Trane Technologies plc (TT)

Owens Corning Inc and Trane Technologies plc are both Building Products & Equipment companies. Trane Technologies plc is the larger, with a market value of $85.9B against $9.8B — 8.7× the size. Owens Corning Inc 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 −8.38%. Trane Technologies plc has the higher net margin (13.6% vs −4.42%) and the higher return on invested capital (21.5% vs 1.80%). Both pay a dividend; Owens Corning Inc yields more (2.56% vs 1.04%). Across the 22 metrics below, Trane Technologies plc leads on 14 and Owens Corning Inc on 8.

Valuation

Metric OC TT Building Products & Equipment median
P/E n/m 27.83 23.33
P/S 1.01 3.73 2.09
P/B 3.04 9.49 2.85
Price to free cash flow 11.47 22.60 18.42
EV/EBITDA 7.40 19.63 13.29
EV/Sales 1.49 3.86 2.28
Earnings yield (4.30%) 3.59% 3.04%
Free cash flow yield 8.72% 4.43% 4.26%

Profitability

Metric OC TT Building Products & Equipment median
Gross margin 25.03% 34.99% 31.88%
Operating margin 2.33% 17.92% 7.18%
Net margin (4.42%) 13.56% 4.11%
Free cash flow margin 8.79% 16.52% 6.41%
Return on equity (11.18%) 36.04% 5.95%
Return on assets (3.37%) 13.92% 3.90%
Return on invested capital 1.80% 21.46% 5.54%

Growth

Metric OC TT Building Products & Equipment median
Revenue growth (TTM) (8.38%) 10.33% 6.27%
EPS growth (last fiscal year) (184.40%) 15.48% (28.29%)
Revenue growth, 5-year CAGR 7.45% 11.35% 4.81%
Net income growth, 5-year CAGR 0.00% 27.84% 0.00%

Health

Metric OC TT Building Products & Equipment median
Debt to equity 1.50 0.46 0.55
Current ratio 1.13 1.12 1.83
Net debt to EBITDA 2.14 0.66 1.45

Dividend

Metric OC TT Building Products & Equipment median
Dividend yield 2.56% 1.04% 1.37%
Payout ratio — 0.29 0.28

Size

Metric OC TT Building Products & Equipment median
Market cap 9.82b 85.90b 3.22b

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