Trane Technologies (NYSE:TT – Get Free Report) and Carrier Global (NYSE:CARR – Get Free Report) are both large-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Institutional & Insider Ownership
83.0% of Trane Technologies shares are owned by institutional investors. Comparatively, 91.0% of Carrier Global shares are owned by institutional investors. 0.4% of Trane Technologies shares are owned by insiders. Comparatively, 6.5% of Carrier Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Trane Technologies and Carrier Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trane Technologies | 0 | 4 | 14 | 2 | 2.90 |
| Carrier Global | 1 | 8 | 11 | 0 | 2.50 |
Trane Technologies presently has a consensus target price of $535.89, suggesting a potential upside of 33.31%. Carrier Global has a consensus target price of $69.27, suggesting a potential upside of 32.08%. Given Trane Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Trane Technologies is more favorable than Carrier Global.
Profitability
This table compares Trane Technologies and Carrier Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trane Technologies | 13.56% | 37.26% | 14.17% |
| Carrier Global | -7.90% | 16.99% | 6.06% |
Earnings and Valuation
This table compares Trane Technologies and Carrier Global”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trane Technologies | $21.32 billion | 4.13 | $2.92 billion | $14.16 | 28.39 |
| Carrier Global | $21.75 billion | 1.97 | $1.48 billion | ($2.22) | -23.62 |
Trane Technologies has higher earnings, but lower revenue than Carrier Global. Carrier Global is trading at a lower price-to-earnings ratio than Trane Technologies, indicating that it is currently the more affordable of the two stocks.
Dividends
Trane Technologies pays an annual dividend of $4.20 per share and has a dividend yield of 1.0%. Carrier Global pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. Trane Technologies pays out 29.7% of its earnings in the form of a dividend. Carrier Global pays out -43.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Trane Technologies has raised its dividend for 5 consecutive years and Carrier Global has raised its dividend for 4 consecutive years. Carrier Global is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Trane Technologies has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Carrier Global has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Summary
Trane Technologies beats Carrier Global on 12 of the 18 factors compared between the two stocks.
About Trane Technologies
Trane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, custom, and custom and transport refrigeration in Ireland and internationally. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps, auxiliary power units; chillers; coils and condensers; gensets; dehumidifiers; ductless; furnaces; home automation products; humidifiers; indoor air quality assessments and related products; large and light commercial unitary products; refrigerant reclamation products; thermostats/controls; transport heater products; variable refrigerant flow products; and water source heat pumps. The company also provides building management, telematic, control, energy efficiency and infrastructure program, geothermal, thermal energy, thermostats, rate chambers, package heating and cooling, temporary heating and cooling, and unitary systems; bus, rail, and multi-pipe heating, ventilation, and air conditioning systems; and container, diesel-powered, truck, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration and air filtration systems, as well as aftermarket and OEM parts and supplies. In addition, it offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. It markets and sells its products under the Trane and Thermo King brands through sales offices, distributors, and dealers; and through sales and service companies with a supporting chain of distributors. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. Trane Technologies plc was founded in 1885 and is headquartered in Swords, Ireland.
About Carrier Global
Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers. Its products include air conditioners, heating systems, heat pumps, controls, and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions. The Refrigeration segment offers transport refrigeration and monitoring products and services, as well as digital solutions for trucks, trailers, shipping containers, intermodal applications, food retail, and warehouse cooling; and commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems, and controls. The Fire & Security segment provides various residential, commercial, and industrial technologies, including fire, flame, gas, smoke, and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. This segment also offers fire and security service, such as audit, design, installation, and system integration, as well as aftermarket maintenance and repair and monitoring services. It offers its products under the Autronica, Det-Tronics, Edwards, Aritech, Fireye, GST, Kidde, LenelS2, Marioff, Onity, and Supra; Carrier, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, and Riello; and Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech brands. Carrier Global Corporation was incorporated in 2019 and is headquartered in Palm Beach Gardens, Florida.
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