TT vs. TXT: Trane Technologies vs. Textron Stock Comparison
How do Trane Technologies (TT) and Textron (TXT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Trane Technologies (TT) and Textron (TXT) both fall under the Capital Goods industry group, but TT is classified in Building Products while TXT is classified in Aerospace & Defense.
| Profile Item | TT | TXT |
|---|---|---|
| Name | Trane Technologies plc | Textron Inc. |
| Country/Region | Ireland | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Building Products | Aerospace & Defense |
| GICS Sub-Industry | Building Products | Aerospace & Defense |
| Market Capitalization | 87.94 billion USD | 14.15 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 17, 1980 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | TT | TXT |
|---|---|---|
| Total Return (1Y) | -2.56% | 3.94% |
| Total Return (3Y, Annualized) | 25.06% | 4.49% |
| Total Return (5Y, Annualized) | 18.70% | 2.30% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | TT | TXT |
|---|---|---|
| Volatility (1Y, Annualized) | 30.26% | 29.18% |
| Beta (5Y) | 1.18 | 0.87 |
| Max Drawdown (5Y) | -39.76% | -37.33% |
| Avg. Volume (3M) | 1.24M | 1.72M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | TT | TXT |
|---|---|---|
| Sharpe Ratio (1Y) | -0.23 | -0.01 |
| Sortino Ratio (1Y) | -0.31 | -0.02 |
Profitability
ROE (TTM)
Trane Technologies (TT) at 36.94% sits in the top ROE quartile, while Textron (TXT) at 12.48% is closer to the peer norm — stronger capital efficiency for TT.
TT
Capital Goods industry group
36.94%
- Max
- 40.55%
- TT
- 36.94%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
TXT
Capital Goods industry group
12.48%
- Max
- 40.55%
- Q3
- 19.29%
- TXT
- 12.48%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
Trane Technologies (TT) at 13.56% retains a top-quartile share of revenue as profit, ahead of Textron (TXT) at 6.30%, which keeps about the industry-typical share.
TT
Capital Goods industry group
13.56%
- Max
- 27.47%
- TT
- 13.56%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
TXT
Capital Goods industry group
6.30%
- Max
- 27.47%
- Q3
- 12.10%
- TXT
- 6.30%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Trane Technologies (TT) at 19.85% operates in the top operating margin quartile, ahead of Textron (TXT) at 9.33%, which runs around its industry’s norm.
TT
Capital Goods industry group
19.85%
- Max
- 36.60%
- TT
- 19.85%
- Q3
- 18.33%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
TXT
Capital Goods industry group
9.33%
- Max
- 36.60%
- Q3
- 18.33%
- Median
- 11.12%
- TXT
- 9.33%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | TT | TXT |
|---|---|---|
| ROE (TTM) | 36.94% | 12.48% |
| ROA (TTM) | 11.42% | 4.51% |
| Net Margin (TTM) | 13.56% | 6.30% |
| Operating Margin (TTM) | 19.85% | 9.33% |
| Gross Margin (TTM) | 34.99% | 17.53% |
Growth
Revenue Growth
Both Trane Technologies (TT) at 7.48% and Textron (TXT) at 8.01% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Trane Technologies (TT) at 15.48% and Textron (TXT) at 18.02% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | TT | TXT |
|---|---|---|
| Revenue Growth (YoY) | 7.48% | 8.01% |
| Revenue Growth (3Y CAGR) | 10.06% | 4.77% |
| EPS Growth (YoY) | 15.48% | 18.02% |
| EPS Growth (3Y CAGR) | 20.17% | 8.42% |
Financial Strength
Current Ratio (MRQ)
Textron (TXT) at 1.80 keeps current ratio within its industry’s typical mid-range, while Trane Technologies (TT) at 1.12 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for TT.
TT
Capital Goods industry group
1.12
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- Q1
- 1.43
- TT
- 1.12
- Min
- 0.36
TXT
Capital Goods industry group
1.80
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- TXT
- 1.80
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Both Trane Technologies (TT) at 0.46 and Textron (TXT) at 0.52 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
TT
Capital Goods industry group
0.46
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- TT
- 0.46
- Q1
- 0.29
- Min
- 0.00
TXT
Capital Goods industry group
0.52
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- TXT
- 0.52
- Q1
- 0.29
- Min
- 0.00
Financial Strength Metrics
| Metric | TT | TXT |
|---|---|---|
| Current Ratio (MRQ) | 1.12 | 1.80 |
| Debt / Equity (MRQ) | 0.46 | 0.52 |
| Net Debt / EBITDA | 0.66 | 1.54 |
Dividends
Dividend Yield (TTM)
Both Trane Technologies (TT) at 1.04% and Textron (TXT) at 0.09% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
TT
Capital Goods industry group
1.04%
- Max
- 2.66%
- Q3
- 1.14%
- TT
- 1.04%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
TXT
Capital Goods industry group
0.09%
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- TXT
- 0.09%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Textron (TXT) at 1.44% pays out a band-typical share of earnings, while Trane Technologies (TT) at 28.42% distributes more than its industry norm — less retained, thinner cover.
TT
Capital Goods industry group
28.42%
- Max
- 67.39%
- TT
- 28.42%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
TXT
Capital Goods industry group
1.44%
- Max
- 67.39%
- Q3
- 28.02%
- Median
- 6.86%
- TXT
- 1.44%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | TT | TXT |
|---|---|---|
| Dividend Yield (TTM) | 1.04% | 0.09% |
| Dividend Payout Ratio (TTM) | 28.42% | 1.44% |
Valuation
P/E Ratio (TTM)
Textron (TXT) at 15.03 sits in the cheaper P/E ratio quartile, while Trane Technologies (TT) at 27.92 is closer to its industry’s usual earnings multiple — a discount for TXT, though growth and earnings durability still matter.
TT
Capital Goods industry group
27.92
- Max
- 59.38
- Q3
- 35.92
- TT
- 27.92
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
TXT
Capital Goods industry group
15.03
- Max
- 59.38
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- TXT
- 15.03
- Min
- 3.03
P/S Ratio (TTM)
Textron (TXT) at 0.92 looks cheap on sales in the lower P/S ratio quartile, while Trane Technologies (TT) at 3.79 looks rich in the upper quartile — a clear gap in price per dollar of revenue.
TT
Capital Goods industry group
3.79
- Max
- 7.54
- TT
- 3.79
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
TXT
Capital Goods industry group
0.92
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- TXT
- 0.92
- Min
- 0.03
P/B Ratio (MRQ)
Textron (TXT) at 1.74 looks cheap against book in the lower P/B ratio quartile, while Trane Technologies (TT) at 9.66 carries a premium in the upper quartile — a clear price-to-book gap.
TT
Capital Goods industry group
9.66
- TT
- 9.66
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
TXT
Capital Goods industry group
1.74
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- TXT
- 1.74
- Min
- -1.08
Valuation Metrics
| Metric | TT | TXT |
|---|---|---|
| P/E Ratio (TTM) | 27.92 | 15.03 |
| P/S Ratio (TTM) | 3.79 | 0.92 |
| P/B Ratio (MRQ) | 9.66 | 1.74 |
| Free Cash Flow Yield (TTM) | 3.94% | 5.35% |