TT vs. XYL: Trane Technologies vs. Xylem Stock Comparison

November 11, 2026

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

Company profile comparison for Trane Technologies (TT) and Xylem (XYL)
Profile Item	TT	XYL
Name	Trane Technologies plc	Xylem Inc.
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	22.44 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 17, 1980	October 13, 2011
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

XYL

GSPC

Trane Technologies (TT) vs. Xylem (XYL), 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 Xylem (XYL). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Trane Technologies (TT) and Xylem (XYL)
Metric	TT	XYL
Total Return (1Y)	-2.56%	-33.10%
Total Return (3Y, Annualized)	25.06%	2.29%
Total Return (5Y, Annualized)	18.70%	-4.47%

Risk Profile

Drawdown History

XYL

GSPC

Trane Technologies (TT) vs. Xylem (XYL), 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 Xylem (XYL). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Trane Technologies (TT) and Xylem (XYL)
Metric	TT	XYL
Volatility (1Y, Annualized)	30.26%	30.74%
Beta (5Y)	1.18	0.96
Max Drawdown (5Y)	-39.76%	-44.89%
Avg. Volume (3M)	1.24M	2.60M

Risk-Adjusted Performance

Risk-Return Positioning

TT and XYL 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 Xylem (XYL)
Metric	TT	XYL
Sharpe Ratio (1Y)	-0.23	-1.22
Sortino Ratio (1Y)	-0.31	-1.48

Profitability

ROE (TTM)

Trane Technologies (TT) at 36.94% sits in the top ROE quartile, while Xylem (XYL) at 9.76% 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%

XYL

Capital Goods industry group

9.76%

Max: 40.55%
Q3: 19.29%
Median: 12.12%
XYL: 9.76%
Q1: 4.08%
Min: -17.12%

Trane Technologies (TT) vs. Xylem (XYL): 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 Xylem (XYL) at 11.94%, 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%

XYL

Capital Goods industry group

11.94%

Max: 27.47%
Q3: 12.10%
XYL: 11.94%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Trane Technologies (TT) vs. Xylem (XYL): 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 Xylem (XYL) at 15.95%, 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%

XYL

Capital Goods industry group

15.95%

Max: 36.60%
Q3: 18.33%
XYL: 15.95%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Trane Technologies (TT) and Xylem (XYL)
Metric	TT	XYL
ROE (TTM)	36.94%	9.76%
ROA (TTM)	11.42%	5.07%
Net Margin (TTM)	13.56%	11.94%
Operating Margin (TTM)	19.85%	15.95%
Gross Margin (TTM)	34.99%	39.32%

Growth

Revenue Growth

Both Trane Technologies (TT) at 7.48% and Xylem (XYL) at 5.52% 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. Xylem (XYL): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Trane Technologies (TT) at 15.48% and Xylem (XYL) at 7.40% 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. Xylem (XYL): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Trane Technologies (TT) and Xylem (XYL)
Metric	TT	XYL
Revenue Growth (YoY)	7.48%	5.52%
Revenue Growth (3Y CAGR)	10.06%	17.84%
EPS Growth (YoY)	15.48%	7.40%
EPS Growth (3Y CAGR)	20.17%	25.99%

Financial Strength

Current Ratio (MRQ)

Both Trane Technologies (TT) at 1.12 and Xylem (XYL) at 1.39 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

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

XYL

Capital Goods industry group

1.39

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
XYL: 1.39
Min: 0.36

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

Debt / Equity (MRQ)

Both Trane Technologies (TT) at 0.46 and Xylem (XYL) at 0.29 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

XYL

Capital Goods industry group

0.29

Max: 2.33
Q3: 1.12
Median: 0.60
XYL: 0.29
Q1: 0.29
Min: 0.00

Trane Technologies (TT) vs. Xylem (XYL): 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 Xylem (XYL)
Metric	TT	XYL
Current Ratio (MRQ)	1.12	1.39
Debt / Equity (MRQ)	0.46	0.29
Net Debt / EBITDA	0.66	1.18

Dividends

Dividend Yield (TTM)

Xylem (XYL) at 1.69% delivers top-quartile income for its industry, while Trane Technologies (TT) at 1.04% pays a more typical yield — both are credible income propositions, XYL the richer one.

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%

XYL

Capital Goods industry group

1.69%

Max: 2.66%
XYL: 1.69%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Both Trane Technologies (TT) at 28.42% and Xylem (XYL) at 37.47% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

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%

XYL

Capital Goods industry group

37.47%

Max: 67.39%
XYL: 37.47%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Trane Technologies (TT) and Xylem (XYL)
Metric	TT	XYL
Dividend Yield (TTM)	1.04%	1.69%
Dividend Payout Ratio (TTM)	28.42%	37.47%

Valuation

P/E Ratio (TTM)

Both Trane Technologies (TT) at 27.92 and Xylem (XYL) at 21.69 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

XYL

Capital Goods industry group

21.69

Max: 59.38
Q3: 35.92
Median: 25.41
XYL: 21.69
Q1: 19.47
Min: 3.03

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

P/S Ratio (TTM)

Xylem (XYL) at 2.48 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

XYL

Capital Goods industry group

2.48

Max: 7.54
Q3: 3.76
XYL: 2.48
Median: 2.15
Q1: 1.03
Min: 0.03

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

P/B Ratio (MRQ)

Xylem (XYL) at 2.19 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

XYL

Capital Goods industry group

2.19

Max: 9.66
Q3: 5.00
Median: 3.12
XYL: 2.19
Q1: 1.81
Min: -1.08

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

Valuation Metrics

Valuation metrics for Trane Technologies (TT) and Xylem (XYL)
Metric	TT	XYL
P/E Ratio (TTM)	27.92	21.69
P/S Ratio (TTM)	3.79	2.48
P/B Ratio (MRQ)	9.66	2.19
Free Cash Flow Yield (TTM)	3.94%	5.39%