Financial Review: Trane Technologies (NYSE:TT) and Watsco (NYSE:WSO.B)\n\n Posted by <a>Defense World Staff</a> on Aug 1st, 2025 \n\nWatsco (<a>NYSE:WSO.B</a> – <a>Get Free Report</a>) and Trane Technologies (<a>NYSE:TT</a> – <a>Get Free Report</a>) are both large-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings. \n\nEarnings and Valuation\nThis table compares Watsco and Trane Technologies”s gross revenue, earnings per share and valuation.\n\n<table>\n<tbody>\n<tr>\n<td>Gross Revenue</td>\n<td>Price/Sales Ratio</td>\n<td>Net Income</td>\n<td>Earnings Per Share</td>\n<td>Price/Earnings Ratio</td>\n</tr>\n<tr>\n<td>Watsco</td>\n<td>$7.62 billion</td>\n<td>2.39</td>\n<td>$536.29 million</td>\n<td>$13.01</td>\n<td>34.60</td>\n</tr>\n<tr>\n<td>Trane Technologies</td>\n<td>$20.31 billion</td>\n<td>4.81</td>\n<td>$2.57 billion</td>\n<td>$12.61</td>\n<td>34.76</td>\n</tr>\n</tbody>\n</table> Trane Technologies has higher revenue and earnings than Watsco. Watsco is trading at a lower price-to-earnings ratio than Trane Technologies, indicating that it is currently the more affordable of the two stocks. \n\nAnalyst Recommendations\nThis is a summary of recent recommendations and price targets for Watsco and Trane Technologies, as provided by MarketBeat.com. \n\n<table>\n<tbody>\n<tr>\n<td>Sell Ratings</td>\n<td>Hold Ratings</td>\n<td>Buy Ratings</td>\n<td>Strong Buy Ratings</td>\n<td>Rating Score</td>\n</tr>\n<tr>\n<td>Watsco</td>\n<td>0</td>\n<td>0</td>\n<td>0</td>\n<td>0</td>\n<td>0.00</td>\n</tr>\n<tr>\n<td>Trane Technologies</td>\n<td>1</td>\n<td>8</td>\n<td>6</td>\n<td>1</td>\n<td>2.44</td>\n</tr>\n</tbody>\n</table>\n\nTrane Technologies has a consensus price target of $455.67, indicating a potential upside of 3.97%. Given Trane Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Trane Technologies is more favorable than Watsco.\n\nProfitability\nThis table compares Watsco and Trane Technologies’ net margins, return on equity and return on assets.\n\n<table>\n<tbody>\n<tr>\n<td>Net Margins</td>\n<td>Return on Equity</td>\n<td>Return on Assets</td>\n</tr>\n<tr>\n<td>Watsco</td>\n<td>7.08%</td>\n<td>16.96%</td>\n<td>11.69%</td>\n</tr>\n<tr>\n<td>Trane Technologies</td>\n<td>13.76%</td>\n<td>36.61%</td>\n<td>13.58%</td>\n</tr>\n</tbody>\n</table>\n\nInsider &amp; Institutional Ownership\n0.1% of Watsco shares are held by institutional investors. Comparatively, 83.0% of Trane Technologies shares are held by institutional investors. 13.8% of Watsco shares are held by insiders. Comparatively, 0.4% of Trane Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.\n\nRisk &amp; Volatility\nWatsco has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&amp;P 500. Comparatively, Trane Technologies has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&amp;P 500. \n\nDividends\nWatsco pays an annual dividend of $12.00 per share and has a dividend yield of 2.7%. Trane Technologies pays an annual dividend of $3.76 per share and has a dividend yield of 0.9%. Watsco pays out 92.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Trane Technologies pays out 29.8% of its earnings in the form of a dividend. Trane Technologies has raised its dividend for 5 consecutive years. \n\nSummary\nTrane Technologies beats Watsco on 15 of the 18 factors compared between the two stocks.\n\nAbout Watsco\n\n (<a>Get Free Report</a>)\n\nWatsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also provides parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. In addition, the company exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.\n\nAbout Trane Technologies\n\n (<a>Get Free Report</a>)\n\nTrane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, custom, and custom and transport refrigeration in Ireland and internationally. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps, auxiliary power units; chillers; coils and condensers; gensets; dehumidifiers; ductless; furnaces; home automation products; humidifiers; indoor air quality assessments and related products; large and light commercial unitary products; refrigerant reclamation products; thermostats/controls; transport heater products; variable refrigerant flow products; and water source heat pumps. The company also provides building management, telematic, control, energy efficiency and infrastructure program, geothermal, thermal energy, thermostats, rate chambers, package heating and cooling, temporary heating and cooling, and unitary systems; bus, rail, and multi-pipe heating, ventilation, and air conditioning systems; and container, diesel-powered, truck, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration and air filtration systems, as well as aftermarket and OEM parts and supplies. In addition, it offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. It markets and sells its products under the Trane and Thermo King brands through sales offices, distributors, and dealers; and through sales and service companies with a supporting chain of distributors. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. Trane Technologies plc was founded in 1885 and is headquartered in Swords, Ireland.

Financial Review: Trane Technologies (NYSE:TT) and Watsco (NYSE:WSO.B)

The article compares Trane Technologies and Watsco based on financial metrics, including revenue, earnings, valuation, analyst ratings, profitability, institutional ownership, volatility, and dividends. Trane Technologies outperforms Watsco in most factors, including higher revenue, net income, price-to-earnings ratio, profitability, and dividend history, while Watsco has a higher dividend payout ratio but lower institutional ownership and volatility.