Seek Returns

TT vs. WSO.B: Trane Technologies vs. Watsco Stock Comparison

How do Trane Technologies (TT) and Watsco (WSO.B) 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 Watsco (WSO.B) both fall under the Capital Goods industry group, but TT is classified in Building Products while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Trane Technologies (TT) and Watsco (WSO.B)
Profile ItemTTWSO.B
NameTrane Technologies plcWatsco Inc. Class B Common Stock
Country/RegionIrelandUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryBuilding ProductsTrading Companies & Distributors
GICS Sub-IndustryBuilding ProductsTrading Companies & Distributors
Market Capitalization87.94 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

TT
WSO.B
GSPC
Loading price history…
Trane Technologies (TT) vs. Watsco (WSO.B), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Trane Technologies (TT) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Trane Technologies (TT) and Watsco (WSO.B). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
Total Return (1Y)-2.56%-11.21%
Total Return (3Y, Annualized)25.06%-3.05%
Total Return (5Y, Annualized)18.70%4.30%

Risk Profile

Drawdown History

TT
WSO.B
GSPC
Loading price history…
Trane Technologies (TT) vs. Watsco (WSO.B), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Trane Technologies (TT) and Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Trane Technologies (TT) trades around 1.24M shares per day on average, while Watsco (WSO.B) sees only 74 — a volume gap that can matter for position sizing, exit liquidity, and order execution.

Risk profile metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
Volatility (1Y, Annualized)30.26%40.28%
Beta (5Y)1.180.64
Max Drawdown (5Y)-39.76%-43.41%
Avg. Volume (3M)1.24M74

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
TT and WSO.B are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
Sharpe Ratio (1Y)-0.23-0.38
Sortino Ratio (1Y)-0.31-0.57

Profitability

ROE (TTM)

Trane Technologies (TT) at 36.94% sits in the top ROE quartile, while Watsco (WSO.B) at 16.21% 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%

WSO.B

Capital Goods industry group

16.21%

Max
40.55%
Q3
19.29%
WSO.B
16.21%
Median
12.12%
Q1
4.08%
Min
-17.12%
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Trane Technologies (TT) at 13.56% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, 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%

WSO.B

Capital Goods industry group

6.31%

Max
27.47%
Q3
12.10%
WSO.B
6.31%
Median
6.30%
Q1
1.40%
Min
-12.89%
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Trane Technologies (TT) at 19.85% operates in the top operating margin quartile, ahead of Watsco (WSO.B) at 10.14%, 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%

WSO.B

Capital Goods industry group

10.14%

Max
36.60%
Q3
18.33%
Median
11.12%
WSO.B
10.14%
Q1
5.14%
Min
-12.63%
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
ROE (TTM)36.94%16.21%
ROA (TTM)11.42%8.27%
Net Margin (TTM)13.56%6.31%
Operating Margin (TTM)19.85%10.14%
Gross Margin (TTM)34.99%27.18%

Growth

Revenue Growth

Trane Technologies (TT) at 7.48% is around its peer norm for revenue growth, while Watsco (WSO.B) at -4.98% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Trane Technologies (TT) at 15.48% and Watsco (WSO.B) at -7.47% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
Revenue Growth (YoY)7.48%-4.98%
Revenue Growth (3Y CAGR)10.06%-0.16%
EPS Growth (YoY)15.48%-7.47%
EPS Growth (3Y CAGR)20.17%-6.89%

Financial Strength

Current Ratio (MRQ)

Watsco (WSO.B) at 3.15 carries current ratio above its industry’s typical mid-range, while Trane Technologies (TT) at 1.12 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

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

WSO.B

Capital Goods industry group

3.15

Max
5.22
WSO.B
3.15
Q3
2.95
Median
2.08
Q1
1.43
Min
0.36
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watsco (WSO.B) at 0.16 keeps leverage in the lower industry quartile, while Trane Technologies (TT) at 0.46 runs a more typical debt-to-equity mix.

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

WSO.B

Capital Goods industry group

0.16

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
WSO.B
0.16
Min
0.00
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
Current Ratio (MRQ)1.123.15
Debt / Equity (MRQ)0.460.16
Net Debt / EBITDA0.66-0.14

Dividends

Dividend Yield (TTM)

Trane Technologies (TT) at 1.04% pays an industry-typical yield; Watsco (WSO.B) at 4.02% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

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%

WSO.B

Capital Goods industry group

4.02%

WSO.B
4.02%
Max
2.66%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watsco (WSO.B) reports payout ratio above 100% at 109.66%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Trane Technologies (TT) reports 28.42%, ranking against industry peers normally.

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%

WSO.B

Capital Goods industry group

109.66%

WSO.B
109.66%
Max
67.39%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
Dividend Yield (TTM)1.04%4.02%
Dividend Payout Ratio (TTM)28.42%109.66%

Valuation

P/E Ratio (TTM)

Both Trane Technologies (TT) at 27.92 and Watsco (WSO.B) at 27.26 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

WSO.B

Capital Goods industry group

27.26

Max
59.38
Q3
35.92
WSO.B
27.26
Median
25.41
Q1
19.47
Min
3.03
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Watsco (WSO.B) at 1.74 is priced about in line with its industry on P/S ratio, while Trane Technologies (TT) at 3.79 sits in the pricier quartile — TT costs more per dollar of sales.

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

WSO.B

Capital Goods industry group

1.74

Max
7.54
Q3
3.76
Median
2.15
WSO.B
1.74
Q1
1.03
Min
0.03
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Watsco (WSO.B) at 3.99 is valued about in line with its industry on P/B ratio, while Trane Technologies (TT) at 9.66 carries an above-peer premium to book — TT is pricier on assets.

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

WSO.B

Capital Goods industry group

3.99

Max
9.66
Q3
5.00
WSO.B
3.99
Median
3.12
Q1
1.81
Min
-1.08
Loading chart…
Trane Technologies (TT) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Trane Technologies (TT) and Watsco (WSO.B)
MetricTTWSO.B
P/E Ratio (TTM)27.9227.26
P/S Ratio (TTM)3.791.74
P/B Ratio (MRQ)9.663.99
Free Cash Flow Yield (TTM)3.94%3.50%