TT vs CARR Stock Comparison: AI Score, Valuation, Performance and Upside
Trane Technologies is generally evaluated as a consistent execution story benefiting from data center and commercial cooling demand with a strong margin trajectory, while Carrier Global is assessed on its post-divestiture turnaround and ability to integrate recent portfolio changes. The comparison contrasts a steadier compounder against a company still proving out its streamlined strategy.
Use this comparison to weigh Trane's proven execution and data-center cooling exposure against Carrier's post-restructuring margin improvement and integration risk.
TT holds the edge across 3 of 5 key metrics in this comparison. TT has delivered stronger 1-year price return (+6.93% vs -10.71%), though CARR has the better forward P/E setup (17.77x vs 25.68x for TT). TT leads on both revenue growth (10.60%) and operating margin (19.25%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for CARR (+32.36%) than for TT (+17.38%).
- Want exposure to data center and commercial cooling demand growth
- Value a consistent track record of margin expansion
- Prefer a company with a large recurring service and aftermarket base
- Are comfortable with commercial construction cyclicality
- Believe the post-divestiture portfolio will keep improving margins
- Want exposure to global HVAC and cold chain refrigeration demand
- Are comfortable with integration risk from recent acquisitions
- See value in a more focused, streamlined industrial portfolio
| Metric | TT | CARR |
|---|---|---|
| AI score | 60.9 | 54.7 |
| AI rank | #134 | #245 |
| Latest close | $444.40 | $58.22 |
| 1M return | -2.32% | -5.81% |
| 6M return | -4.67% | -8.80% |
| 1Y return | +6.93% | -10.71% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TT | CARR |
|---|---|---|
| 1Y ago | $10.81K (+8.1%) started 2025-09-02 | $9.17K (-8.3%) started 2025-09-02 |
| 5Y ago | $24.94K (+149.4%) started 2021-09-01 | $11.18K (+11.8%) started 2021-09-01 |
| 10Y ago | $113.78K (+1037.8%) started 2016-09-01 | $55.6K (+456.0%) started 2020-03-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | TT | CARR |
|---|---|---|
| Market cap | $98.78B | $48.46B |
| Trailing P/E | 33.45 | 41.99 |
| Forward P/E | 25.68 | 17.77 |
| Price/Sales | 4.71 | N/A |
| EV/Revenue | 4.60 | 2.71 |
| Analyst target | $526.99 | $77.82 |
| Target upside | +17.38% | +32.36% |
| Metric | TT | CARR |
|---|---|---|
| Revenue growth | 10.60% | 3.90% |
| Earnings growth | 7.10% | -11.80% |
| EPS growth | +7.10% | -11.80% |
| FCF margin | +14.06% | +3.90% |
| Operating margin | 19.25% | 13.07% |
| Profit margin | 13.28% | 5.52% |
| ROIC proxy | 36.64% | 8.97% |
| Return on equity | 36.64% | 8.97% |
| Dividend yield | 0.94% | 1.63% |
| Beta | 1.21 | 1.31 |
| Debt/equity | 53.40 | 92.00 |
| Current ratio | 1.07 | 1.02 |
| Quick ratio | 0.74 | 0.55 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | TT | CARR |
|---|---|---|---|
| 1Y | Growth | +8.14% | -8.31% |
| CAGR | +8.20% | -8.36% | |
| Sharpe ratio | 0.26 | -0.20 | |
| Max drawdown | 16.10% | 23.39% | |
| Max daily drop | 6.19% | 9.45% | |
| Max wkly drop | 8.48% | 12.01% | |
| 5Y | Growth | +136.58% | +6.00% |
| CAGR | +18.80% | +1.17% | |
| Sharpe ratio | 0.60 | 0.06 | |
| Max drawdown | 39.76% | 40.42% | |
| Max daily drop | 8.40% | 10.61% | |
| Max wkly drop | 11.01% | 17.11% | |
| 10Y | Growth | +872.74% | +418.87% |
| CAGR | +25.55% | +29.07% | |
| Sharpe ratio | 0.80 | 0.75 | |
| Max drawdown | 40.53% | 40.82% | |
| Max daily drop | 10.94% | 12.75% | |
| Max wkly drop | 26.84% | 17.32% |
| Category | TT | CARR |
|---|---|---|
| Company | Trane Technologies plc | Carrier Global Corporation |
| Sector | Industrials | Industrials |
| Industry | Building Products & Equipment | N/A |
| Core business | Trane Technologies designs and manufactures heating, ventilation, air conditioning, and refrigeration systems for commercial, residential, and transport applications. | Carrier Global provides HVAC, refrigeration, and fire and security solutions globally, having refocused its portfolio after divesting non-core segments. |
| Investor focus | Investors track commercial HVAC bookings and backlog, data center cooling demand, and margin expansion from higher-efficiency product mix. | Investors watch post-divestiture margin improvement, residential and commercial HVAC demand, and progress integrating recent acquisitions. |
- Strong exposure to data center and commercial cooling demand
- Consistent track record of margin expansion and execution
- Large service and aftermarket revenue base providing recurring cash flow
- Streamlined portfolio focused on core climate and refrigeration businesses
- Global brand recognition in HVAC and cold chain refrigeration
- Ongoing cost synergy and margin improvement initiatives
- Cyclicality tied to commercial construction and capital spending
- Input cost and supply chain volatility affecting manufacturing margins
- Regulatory transitions around refrigerants requiring product transitions
- Integration execution risk from recent portfolio changes and acquisitions
- Exposure to residential construction cycles alongside commercial demand
- Leverage levels following acquisition-related spending
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