AZEK vs. TT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AZEK and TT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TT’s market capitalization of 97.55 billion USD is significantly greater than AZEK’s 7.82 billion USD, highlighting its more substantial market valuation.
AZEK’s beta of 1.82 points to significantly higher volatility compared to TT (beta: 1.17), suggesting AZEK has greater potential for both gains and losses relative to market movements.
| Symbol | AZEK | TT |
|---|---|---|
| Company Name | The AZEK Company Inc. | Trane Technologies plc |
| Country | US | IE |
| Sector | Industrials | Industrials |
| Industry | Construction | Construction |
| CEO | Jesse G. Singh | David S. Regnery |
| Price | 54.35 USD | 437.39 USD |
| Market Cap | 7.82 billion USD | 97.55 billion USD |
| Beta | 1.82 | 1.17 |
| Exchange | NYSE | NYSE |
| IPO Date | June 12, 2020 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AZEK and TT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AZEK
10.79%
Construction Industry
- Max
- 40.76%
- Q3
- 26.03%
- Median
- 16.38%
- Q1
- 5.66%
- Min
- -4.01%
AZEK’s Return on Equity of 10.79% is on par with the norm for the Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.
TT
37.12%
Construction Industry
- Max
- 40.76%
- Q3
- 26.03%
- Median
- 16.38%
- Q1
- 5.66%
- Min
- -4.01%
In the upper quartile for the Construction industry, TT’s Return on Equity of 37.12% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AZEK
20.74%
Construction Industry
- Max
- 27.38%
- Q3
- 15.45%
- Median
- 9.91%
- Q1
- 5.86%
- Min
- 2.28%
In the upper quartile for the Construction industry, AZEK’s Return on Invested Capital of 20.74% signifies a highly effective use of its capital to generate profits when compared to its peers.
TT
20.43%
Construction Industry
- Max
- 27.38%
- Q3
- 15.45%
- Median
- 9.91%
- Q1
- 5.86%
- Min
- 2.28%
In the upper quartile for the Construction industry, TT’s Return on Invested Capital of 20.43% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AZEK
9.92%
Construction Industry
- Max
- 24.94%
- Q3
- 14.61%
- Median
- 10.07%
- Q1
- 2.23%
- Min
- -9.49%
AZEK’s Net Profit Margin of 9.92% is aligned with the median group of its peers in the Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.
TT
13.47%
Construction Industry
- Max
- 24.94%
- Q3
- 14.61%
- Median
- 10.07%
- Q1
- 2.23%
- Min
- -9.49%
TT’s Net Profit Margin of 13.47% is aligned with the median group of its peers in the Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AZEK
36.60%
Construction Industry
- Max
- 24.04%
- Q3
- 19.17%
- Median
- 13.63%
- Q1
- 7.69%
- Min
- -7.88%
AZEK’s Operating Profit Margin of 36.60% is exceptionally high, placing it well above the typical range for the Construction industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
TT
18.15%
Construction Industry
- Max
- 24.04%
- Q3
- 19.17%
- Median
- 13.63%
- Q1
- 7.69%
- Min
- -7.88%
TT’s Operating Profit Margin of 18.15% is around the midpoint for the Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AZEK | TT |
|---|---|---|
| Return on Equity (TTM) | 10.79% | 37.12% |
| Return on Assets (TTM) | 6.56% | 13.60% |
| Return on Invested Capital (TTM) | 20.74% | 20.43% |
| Net Profit Margin (TTM) | 9.92% | 13.47% |
| Operating Profit Margin (TTM) | 36.60% | 18.15% |
| Gross Profit Margin (TTM) | 37.19% | 35.93% |
Financial Strength
Current Ratio
AZEK
2.45
Construction Industry
- Max
- 4.22
- Q3
- 2.59
- Median
- 1.84
- Q1
- 1.44
- Min
- 0.96
AZEK’s Current Ratio of 2.45 aligns with the median group of the Construction industry, indicating that its short-term liquidity is in line with its sector peers.
TT
1.09
Construction Industry
- Max
- 4.22
- Q3
- 2.59
- Median
- 1.84
- Q1
- 1.44
- Min
- 0.96
TT’s Current Ratio of 1.09 falls into the lower quartile for the Construction industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AZEK
0.30
Construction Industry
- Max
- 1.75
- Q3
- 1.15
- Median
- 0.84
- Q1
- 0.56
- Min
- 0.05
Falling into the lower quartile for the Construction industry, AZEK’s Debt-to-Equity Ratio of 0.30 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
TT
0.64
Construction Industry
- Max
- 1.75
- Q3
- 1.15
- Median
- 0.84
- Q1
- 0.56
- Min
- 0.05
TT’s Debt-to-Equity Ratio of 0.64 is typical for the Construction industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AZEK
12.45
Construction Industry
- Max
- 30.91
- Q3
- 15.60
- Median
- 7.16
- Q1
- 2.73
- Min
- -4.26
AZEK’s Interest Coverage Ratio of 12.45 is positioned comfortably within the norm for the Construction industry, indicating a standard and healthy capacity to cover its interest payments.
TT
15.46
Construction Industry
- Max
- 30.91
- Q3
- 15.60
- Median
- 7.16
- Q1
- 2.73
- Min
- -4.26
TT’s Interest Coverage Ratio of 15.46 is positioned comfortably within the norm for the Construction industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AZEK | TT |
|---|---|---|
| Current Ratio (TTM) | 2.45 | 1.09 |
| Quick Ratio (TTM) | 1.47 | 0.74 |
| Debt-to-Equity Ratio (TTM) | 0.30 | 0.64 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.81 | 0.96 |
| Interest Coverage Ratio (TTM) | 12.45 | 15.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AZEK and TT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AZEK
0.00%
Construction Industry
- Max
- 2.43%
- Q3
- 1.20%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
AZEK currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
TT
0.81%
Construction Industry
- Max
- 2.43%
- Q3
- 1.20%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
TT’s Dividend Yield of 0.81% is consistent with its peers in the Construction industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AZEK
0.00%
Construction Industry
- Max
- 84.31%
- Q3
- 28.17%
- Median
- 11.69%
- Q1
- 0.00%
- Min
- 0.00%
AZEK has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
TT
28.37%
Construction Industry
- Max
- 84.31%
- Q3
- 28.17%
- Median
- 11.69%
- Q1
- 0.00%
- Min
- 0.00%
TT’s Dividend Payout Ratio of 28.37% is in the upper quartile for the Construction industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AZEK | TT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.81% |
| Dividend Payout Ratio (TTM) | 0.00% | 28.37% |
Valuation
Price-to-Earnings Ratio
AZEK
51.82
Construction Industry
- Max
- 52.50
- Q3
- 32.30
- Median
- 22.66
- Q1
- 14.68
- Min
- 9.62
A P/E Ratio of 51.82 places AZEK in the upper quartile for the Construction industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
TT
35.67
Construction Industry
- Max
- 52.50
- Q3
- 32.30
- Median
- 22.66
- Q1
- 14.68
- Min
- 9.62
A P/E Ratio of 35.67 places TT in the upper quartile for the Construction industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
AZEK
3.38
Construction Industry
- Max
- 4.11
- Q3
- 2.42
- Median
- 1.60
- Q1
- 1.15
- Min
- 0.27
The Forward PEG Ratio is often not a primary valuation metric in the Construction industry.
TT
3.12
Construction Industry
- Max
- 4.11
- Q3
- 2.42
- Median
- 1.60
- Q1
- 1.15
- Min
- 0.27
The Forward PEG Ratio is often not a primary valuation metric in the Construction industry.
Price-to-Sales Ratio
AZEK
5.14
Construction Industry
- Max
- 5.26
- Q3
- 3.38
- Median
- 1.63
- Q1
- 0.99
- Min
- 0.09
AZEK’s P/S Ratio of 5.14 is in the upper echelon for the Construction industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TT
4.80
Construction Industry
- Max
- 5.26
- Q3
- 3.38
- Median
- 1.63
- Q1
- 0.99
- Min
- 0.09
TT’s P/S Ratio of 4.80 is in the upper echelon for the Construction industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AZEK
5.38
Construction Industry
- Max
- 12.88
- Q3
- 6.91
- Median
- 3.04
- Q1
- 1.93
- Min
- 0.71
AZEK’s P/B Ratio of 5.38 is within the conventional range for the Construction industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
TT
13.03
Construction Industry
- Max
- 12.88
- Q3
- 6.91
- Median
- 3.04
- Q1
- 1.93
- Min
- 0.71
At 13.03, TT’s P/B Ratio is at an extreme premium to the Construction industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AZEK | TT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 51.82 | 35.67 |
| Forward PEG Ratio (TTM) | 3.38 | 3.12 |
| Price-to-Sales Ratio (P/S, TTM) | 5.14 | 4.80 |
| Price-to-Book Ratio (P/B, TTM) | 5.38 | 13.03 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 37.60 | 34.48 |
| EV-to-EBITDA (TTM) | 22.23 | 24.98 |
| EV-to-Sales (TTM) | 5.34 | 5.00 |