TT vs. WTS: Trane Technologies vs. Watts Water Stock Comparison

November 11, 2026

How do Trane Technologies (TT) and Watts Water (WTS) 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 Watts Water (WTS) both fall under the Capital Goods industry group, but TT is classified in Building Products while WTS is classified in Machinery.

Company profile comparison for Trane Technologies (TT) and Watts Water (WTS)
Profile Item	TT	WTS
Name	Trane Technologies plc	Watts Water Technologies, Inc. Class A Common Stock
Country/Region	Ireland	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Building Products	Machinery
GICS Sub-Industry	Building Products	Industrial Machinery & Supplies & Components
Market Capitalization	87.94 billion USD	11.55 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 17, 1980	August 21, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

WTS

GSPC

Trane Technologies (TT) vs. Watts Water (WTS), 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

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Trailing total returns for Trane Technologies (TT) and Watts Water (WTS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Trane Technologies (TT) and Watts Water (WTS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Trane Technologies (TT) and Watts Water (WTS)
Metric	TT	WTS
Total Return (1Y)	-2.56%	33.85%
Total Return (3Y, Annualized)	25.06%	25.59%
Total Return (5Y, Annualized)	18.70%	12.56%

Risk Profile

Drawdown History

WTS

GSPC

Trane Technologies (TT) vs. Watts Water (WTS), 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

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Distribution of monthly total returns for Trane Technologies (TT) and Watts Water (WTS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Trane Technologies (TT) and Watts Water (WTS)
Metric	TT	WTS
Volatility (1Y, Annualized)	30.26%	27.38%
Beta (5Y)	1.18	1.11
Max Drawdown (5Y)	-39.76%	-44.08%
Avg. Volume (3M)	1.24M	225.08K

Risk-Adjusted Performance

Risk-Return Positioning

TT and WTS 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 Watts Water (WTS)
Metric	TT	WTS
Sharpe Ratio (1Y)	-0.23	1.08
Sortino Ratio (1Y)	-0.31	1.78

Profitability

ROE (TTM)

Both Trane Technologies (TT) at 36.94% and Watts Water (WTS) at 20.91% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

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%

WTS

Capital Goods industry group

20.91%

Max: 40.55%
WTS: 20.91%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Trane Technologies (TT) at 13.56% and Watts Water (WTS) at 16.00% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

WTS

Capital Goods industry group

16.00%

Max: 27.47%
WTS: 16.00%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Trane Technologies (TT) at 19.85% and Watts Water (WTS) at 20.85% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

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%

WTS

Capital Goods industry group

20.85%

Max: 36.60%
WTS: 20.85%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Trane Technologies (TT) and Watts Water (WTS)
Metric	TT	WTS
ROE (TTM)	36.94%	20.91%
ROA (TTM)	11.42%	12.05%
Net Margin (TTM)	13.56%	16.00%
Operating Margin (TTM)	19.85%	20.85%
Gross Margin (TTM)	34.99%	49.09%

Growth

Revenue Growth

Both Trane Technologies (TT) at 7.48% and Watts Water (WTS) at 8.27% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Trane Technologies (TT) at 15.48% and Watts Water (WTS) at 17.03% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Trane Technologies (TT) and Watts Water (WTS)
Metric	TT	WTS
Revenue Growth (YoY)	7.48%	8.27%
Revenue Growth (3Y CAGR)	10.06%	7.20%
EPS Growth (YoY)	15.48%	17.03%
EPS Growth (3Y CAGR)	20.17%	10.78%

Financial Strength

Current Ratio (MRQ)

Watts Water (WTS) at 2.80 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

WTS

Capital Goods industry group

2.80

Max: 5.22
Q3: 2.95
WTS: 2.80
Median: 2.08
Q1: 1.43
Min: 0.36

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watts Water (WTS) at 0.08 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

WTS

Capital Goods industry group

0.08

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
WTS: 0.08
Min: 0.00

Trane Technologies (TT) vs. Watts Water (WTS): 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 Watts Water (WTS)
Metric	TT	WTS
Current Ratio (MRQ)	1.12	2.80
Debt / Equity (MRQ)	0.46	0.08
Net Debt / EBITDA	0.66	-0.40

Dividends

Dividend Yield (TTM)

Both Trane Technologies (TT) at 1.04% and Watts Water (WTS) at 0.66% 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%

WTS

Capital Goods industry group

0.66%

Max: 2.66%
Q3: 1.14%
WTS: 0.66%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watts Water (WTS) at 17.24% 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%

WTS

Capital Goods industry group

17.24%

Max: 67.39%
Q3: 28.02%
WTS: 17.24%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Trane Technologies (TT) and Watts Water (WTS)
Metric	TT	WTS
Dividend Yield (TTM)	1.04%	0.66%
Dividend Payout Ratio (TTM)	28.42%	17.24%

Valuation

P/E Ratio (TTM)

Both Trane Technologies (TT) at 27.92 and Watts Water (WTS) at 25.95 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

WTS

Capital Goods industry group

25.95

Max: 59.38
Q3: 35.92
WTS: 25.95
Median: 25.41
Q1: 19.47
Min: 3.03

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Both Trane Technologies (TT) at 3.79 and Watts Water (WTS) at 4.14 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

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

WTS

Capital Goods industry group

4.14

Max: 7.54
WTS: 4.14
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Watts Water (WTS) at 4.98 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

WTS

Capital Goods industry group

4.98

Max: 9.66
Q3: 5.00
WTS: 4.98
Median: 3.12
Q1: 1.81
Min: -1.08

Trane Technologies (TT) vs. Watts Water (WTS): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Trane Technologies (TT) and Watts Water (WTS)
Metric	TT	WTS
P/E Ratio (TTM)	27.92	25.95
P/S Ratio (TTM)	3.79	4.14
P/B Ratio (MRQ)	9.66	4.98
Free Cash Flow Yield (TTM)	3.94%	2.21%