Trane Technologies (NYSE:TT) vs. Carrier Global (NYSE:CARR) Financial Comparison

Carrier Global (NYSE:CARR) and Trane Technologies (NYSE:TT) are both large-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Carrier Global and Trane Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carrier Global	-7.90%	16.99%	6.06%
Trane Technologies	13.56%	37.26%	14.17%

Volatility & Risk

Carrier Global has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Trane Technologies has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares Carrier Global and Trane Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carrier Global	$21.75 billion	2.05	$1.48 billion	($2.22)	-24.54
Trane Technologies	$21.32 billion	4.36	$2.92 billion	$14.16	29.99

Trane Technologies has lower revenue, but higher earnings 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Carrier Global and Trane Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carrier Global	1	8	11	0	2.50
Trane Technologies	0	4	14	2	2.90

Carrier Global currently has a consensus target price of $69.27, indicating a potential upside of 27.13%. Trane Technologies has a consensus target price of $532.21, indicating a potential upside of 25.32%. Given Carrier Global’s higher probable upside, equities analysts plainly believe Carrier Global is more favorable than Trane Technologies.

Insider and Institutional Ownership

91.0% of Carrier Global shares are owned by institutional investors. Comparatively, 83.0% of Trane Technologies shares are owned by institutional investors. 6.5% of Carrier Global shares are owned by insiders. Comparatively, 0.4% of Trane Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Carrier Global pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. Trane Technologies pays an annual dividend of $4.20 per share and has a dividend yield of 1.0%. Carrier Global pays out -43.2% of its earnings in the form of a dividend. Trane Technologies pays out 29.7% 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. Carrier Global has raised its dividend for 4 consecutive years and Trane Technologies has raised its dividend for 5 consecutive years. Carrier Global is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Trane Technologies beats Carrier Global on 11 of the 18 factors compared between the two stocks.

About Carrier Global

Carrier Global Corporation develops and provides heating, ventilation, air conditioning and refrigeration systems, along with related building technologies. Its products and services serve residential, commercial and industrial customers, as well as applications that require temperature-controlled transportation and storage. The company’s offerings include heating and cooling equipment, building automation and energy-management solutions, and fire and security systems. Its portfolio includes brands such as Carrier, Bryant and Kidde, and it provides installation, maintenance and other services to support its equipment.

About Trane Technologies

Trane Technologies plc is a global climate innovator that designs, manufactures, and services heating, ventilation, air conditioning, and refrigeration systems. Its products and services support commercial buildings, homes, and transportation applications, including temperature-controlled shipping. The company’s portfolio includes the Trane brand of HVAC systems and building services, as well as Thermo King equipment for transport refrigeration and climate control. It also offers building controls, energy-efficiency solutions, system maintenance, and related services.