Trane Technologies plc (TT) vs Advanced Drainage Systems, Inc. (WMS)

Trane Technologies plc and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Trane Technologies plc is the larger, with a market value of $85.9B against $9.3B — 9.3× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 23.3× against 27.8×. Trane Technologies plc grew revenue faster over the last twelve months: 10.3% against 9.18%. Trane Technologies plc has the higher net margin (13.6% vs 12.4%) and the higher return on invested capital (21.5% vs 11.9%). Both pay a dividend; Trane Technologies plc yields more (1.04% vs 0.62%). Across the 23 metrics below, Trane Technologies plc leads on 12 and Advanced Drainage Systems, Inc. on 11.

Valuation

Metric TT WMS Building Products & Equipment median
P/E 27.83 23.33 23.33
P/S 3.73 2.85 2.09
P/B 9.49 5.22 2.85
Price to free cash flow 22.60 16.89 18.42
EV/EBITDA 19.63 12.37 13.29
EV/Sales 3.86 3.34 2.28
Earnings yield 3.59% 4.29% 3.04%
Free cash flow yield 4.43% 5.92% 4.26%

Profitability

Metric TT WMS Building Products & Equipment median
Gross margin 34.99% 38.36% 31.88%
Operating margin 17.92% 19.62% 7.18%
Net margin 13.56% 12.44% 4.11%
Free cash flow margin 16.52% 0.00% 6.41%
Return on equity 36.04% 22.36% 5.95%
Return on assets 13.92% 9.49% 3.90%
Return on invested capital 21.46% 11.90% 5.54%

Growth

Metric TT WMS Building Products & Equipment median
Revenue growth (TTM) 10.33% 9.18% 6.27%
EPS growth (last fiscal year) 15.48% (5.56%) (28.29%)
Revenue growth, 5-year CAGR 11.35% 9.00% 4.81%
Net income growth, 5-year CAGR 27.84% 18.13% 0.00%

Health

Metric TT WMS Building Products & Equipment median
Debt to equity 0.46 0.97 0.55
Current ratio 1.12 2.13 1.83
Net debt to EBITDA 0.66 1.80 1.45

Dividend

Metric TT WMS Building Products & Equipment median
Dividend yield 1.04% 0.62% 1.37%
Payout ratio 0.29 0.14 0.28

Size

Metric TT WMS Building Products & Equipment median
Market cap 85.90b 9.25b 3.22b

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