Financial Survey: Trane Technologies (NYSE:TT) and Resideo Technologies (NYSE:REZI)

Resideo Technologies (NYSE:REZI) and Trane Technologies (NYSE:TT) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Resideo Technologies and Trane Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resideo Technologies	1	2	2	0	2.20
Trane Technologies	1	2	11	1	2.80

Resideo Technologies currently has a consensus target price of $41.00, indicating a potential upside of 114.32%. Trane Technologies has a consensus target price of $521.50, indicating a potential upside of 17.76%. Given Resideo Technologies’ higher probable upside, research analysts plainly believe Resideo Technologies is more favorable than Trane Technologies.

Valuation & Earnings

This table compares Resideo Technologies and Trane Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resideo Technologies	$7.47 billion	0.39	-$527.00 million	$2.26	8.46
Trane Technologies	$21.32 billion	4.57	$2.92 billion	$13.20	33.55

Trane Technologies has higher revenue and earnings than Resideo Technologies. Resideo Technologies is trading at a lower price-to-earnings ratio than Trane Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Resideo Technologies	5.37%	17.79%	5.13%
Trane Technologies	13.28%	35.72%	13.65%

Risk and Volatility

Resideo Technologies has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Trane Technologies has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Institutional & Insider Ownership

91.7% of Resideo Technologies shares are held by institutional investors. Comparatively, 83.0% of Trane Technologies shares are held by institutional investors. 1.6% of Resideo Technologies shares are held by company insiders. Comparatively, 0.4% of Trane Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Trane Technologies beats Resideo Technologies on 11 of the 15 factors compared between the two stocks.

About Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.

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.