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 $96.8B against $9.7B — 10.0× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 22.8× against 34.5×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against 7.03%. Advanced Drainage Systems, Inc. has the higher net margin (14.0% vs 13.3%) and the lower return on invested capital (12.3% vs 20.9%). Both pay a dividend; Trane Technologies plc yields more (1.17% vs 0.35%). Across the 23 metrics below, Advanced Drainage Systems, Inc. leads on 14 and Trane Technologies plc on 9.

Valuation

Metric TT WMS Building Products & Equipment median
P/E 34.48 22.84 24.54
P/S 4.53 3.16 2.00
P/B 11.64 5.60 3.02
Price to free cash flow 28.20 18.49 18.49
EV/EBITDA 23.75 13.08 12.63
EV/Sales 4.68 3.65 2.14
Earnings yield 2.90% 4.38% 2.74%
Free cash flow yield 3.55% 5.41% 3.58%

Profitability

Metric TT WMS Building Products & Equipment median
Gross margin 35.39% 38.65% 29.19%
Operating margin 17.94% 20.74% 6.84%
Net margin 13.28% 14.00% 4.05%
Free cash flow margin 16.06% 17.10% 8.72%
Return on equity 35.74% 25.71% 9.28%
Return on assets 13.13% 10.71% 2.88%
Return on invested capital 20.85% 12.34% 5.16%

Growth

Metric TT WMS Building Products & Equipment median
Revenue growth (TTM) 7.03% 10.37% 3.11%
EPS growth (last fiscal year) 15.48% (5.56%) —
Revenue growth, 5-year CAGR 11.35% 9.00% 5.37%
Net income growth, 5-year CAGR 27.84% 18.13% 0.00%

Health

Metric TT WMS Building Products & Equipment median
Debt to equity 0.53 0.95 0.43
Current ratio 1.07 2.12 1.82
Net debt to EBITDA 0.66 1.80 0.98

Dividend

Metric TT WMS Building Products & Equipment median
Dividend yield 1.17% 0.35% 1.20%
Payout ratio 0.35 0.08 0.04

Size

Metric TT WMS Building Products & Equipment median
Market cap 96.79b 9.72b 1.18b

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