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 $100.6B against $9.0B — 11.2× the size. Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Trane Technologies plc trades at 34.8×. Trane Technologies plc grew revenue faster over the last twelve months: 7.03% against −7.23%. Trane Technologies plc has the higher net margin (13.3% vs −6.81%) and the higher return on invested capital (20.9% vs 0.36%). Both pay a dividend; Owens Corning Inc yields more (3.41% vs 0.89%). 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 34.76 23.15
P/S 0.92 4.57 2.02
P/B 2.38 11.73 2.81
Price to free cash flow 9.32 28.43 16.84
EV/EBITDA 7.19 23.94 12.85
EV/Sales 1.41 4.71 2.04
Earnings yield (7.15%) 2.88% 2.76%
Free cash flow yield 10.73% 3.52% 4.23%

Profitability

Metric OC TT Building Products & Equipment median
Gross margin 25.98% 35.39% 29.19%
Operating margin 0.51% 17.94% 6.99%
Net margin (6.81%) 13.28% 4.05%
Free cash flow margin 9.87% 16.06% 7.60%
Return on equity (14.89%) 35.74% 9.28%
Return on assets (4.93%) 13.13% 2.88%
Return on invested capital 0.36% 20.85% 5.16%

Growth

Metric OC TT Building Products & Equipment median
Revenue growth (TTM) (7.23%) 7.03% 3.11%
EPS growth (last fiscal year) (184.40%) 15.48% (34.13%)
Revenue growth, 5-year CAGR 7.45% 11.35% 5.37%
Net income growth, 5-year CAGR 0.00% 27.84% 0.00%

Health

Metric OC TT Building Products & Equipment median
Debt to equity 1.34 0.53 0.43
Current ratio 1.16 1.07 1.82
Net debt to EBITDA 2.14 0.66 0.98

Dividend

Metric OC TT Building Products & Equipment median
Dividend yield 3.41% 0.89% 1.43%
Payout ratio — 0.31 0.29

Size

Metric OC TT Building Products & Equipment median
Market cap 8.99b 100.63b 1.17b

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