TT
Trane Technologies plc
Construction
Market Cap$108.05B
5Y Perf.+441.2%
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Stock Comparison
TT vs HON
Revenue, margins, valuation, and 5-year total return — side by side.
HON
Honeywell International Inc.
Conglomerates
Market Cap$137.39B
5Y Perf.+48.7%
TT vs HON — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TT | HON |
|---|---|---|
| Industry | Construction | Conglomerates |
| Market Cap | $108.05B | $137.39B |
| Revenue (TTM) | $21.60B | $36.76B |
| Net Income (TTM) | $2.90B | $4.10B |
| Gross Margin | 35.9% | 36.9% |
| Operating Margin | 18.2% | 14.9% |
| Forward P/E | 32.9x | 20.6x |
| Total Debt | $4.62B | $34.58B |
| Cash & Equiv. | $1.76B | $12.49B |
TT vs HON — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TT
HON
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Trane Technologies … (TT) | 100 | 541.2 | +441.2% |
| Honeywell Internati… (HON) | 100 | 148.7 | +48.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TT vs HON
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: HON leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Trane Technologies plc is the stronger pick specifically for profitability and margin quality and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
TT
Trane Technologies plc
The Growth Play
TT is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 7.5%, EPS growth 15.5%, 3Y rev CAGR 10.1%
- 9.1% 10Y total return vs HON's 134.6%
- PEG 1.10 vs HON's 11.22
Best for: growth exposure and long-term compounding
HON
Honeywell International Inc.
The Income Pick
HON carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 15 yrs, beta 0.74, yield 2.1%
- Lower volatility, beta 0.74, current ratio 1.32x
- Beta 0.74, yield 2.1%, current ratio 1.32x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | HON | 7.8% revenue growth vs TT's 7.5% |
| Value | HON | Lower P/E (20.6x vs 32.9x) |
| Quality / Margins | TT | 13.4% margin vs HON's 11.2% |
| Stability / Safety | HON | Beta 0.74 vs TT's 0.97 |
| Dividends | HON | 2.1% yield, 15-year raise streak, vs TT's 0.8% |
| Momentum (1Y) | TT | +21.0% vs HON's +5.5% |
| Efficiency (ROA) | TT | 13.4% ROA vs HON's 5.3%, ROIC 26.2% vs 12.6% |
TT vs HON — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
TT vs HON — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLTTLAGGINGHON
HONHoneywell Internation…
2leads
TTTrane Technologies plc
3leads
6 Total Categories
CATEGORYLEADERvs HONMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
TT5/6
Valuation MetricsMultiples, price ratios, and targets
HON6/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
TT9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
TT6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
HON2/2
Income & Cash Flow (Last 12 Months)
TT leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
HON is the larger business by revenue, generating $36.8B annually — 1.7x TT's $21.6B. Profitability is closely matched — net margins range from 13.4% (TT) to 11.2% (HON). On growth, TT holds the edge at +6.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TTTrane Technologie… | HONHoneywell Interna… |
|---|---|---|
| RevenueTrailing 12 months | $21.6B | $36.8B |
| EBITDAEarnings before interest/tax | $4.3B | $6.5B |
| Net IncomeAfter-tax profit | $2.9B | $4.1B |
| Free Cash FlowCash after capex | $3.2B | $4.2B |
| Gross MarginGross profit ÷ Revenue | +35.9% | +36.9% |
| Operating MarginEBIT ÷ Revenue | +18.2% | +14.9% |
| Net MarginNet income ÷ Revenue | +13.4% | +11.2% |
| FCF MarginFCF ÷ Revenue | +14.6% | +11.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.0% | -6.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -1.9% | -41.9% |
TT leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
HON leads this category, winning 6 of 7 comparable metrics.
Valuation Metrics
At 29.5x trailing earnings, HON trades at a 22% valuation discount to TT's 37.6x P/E. Adjusting for growth (PEG ratio), TT offers better value at 1.26x vs HON's 16.04x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TTTrane Technologie… | HONHoneywell Interna… |
|---|---|---|
| Market CapShares × price | $108.0B | $137.4B |
| Enterprise ValueMkt cap + debt − cash | $110.9B | $159.5B |
| Trailing P/EPrice ÷ TTM EPS | 37.61x | 29.46x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.93x | 20.60x |
| PEG RatioP/E ÷ EPS growth rate | 1.26x | 16.04x |
| EV / EBITDAEnterprise value multiple | 26.21x | 20.05x |
| Price / SalesMarket cap ÷ Revenue | 5.07x | 3.67x |
| Price / BookPrice ÷ Book value/share | 12.69x | 9.03x |
| Price / FCFMarket cap ÷ FCF | 38.43x | 25.48x |
HON leads this category, winning 6 of 7 comparable metrics.
Profitability & Efficiency
TT leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
TT delivers a 34.7% return on equity — every $100 of shareholder capital generates $35 in annual profit, vs $23 for HON. TT carries lower financial leverage with a 0.54x debt-to-equity ratio, signaling a more conservative balance sheet compared to HON's 2.24x. On the Piotroski fundamental quality scale (0–9), TT scores 9/9 vs HON's 6/9, reflecting strong financial health.
| Metric | TTTrane Technologie… | HONHoneywell Interna… |
|---|---|---|
| ROE (TTM)Return on equity | +34.7% | +23.1% |
| ROA (TTM)Return on assets | +13.4% | +5.3% |
| ROICReturn on invested capital | +26.2% | +12.6% |
| ROCEReturn on capital employed | +27.2% | +12.6% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 6 |
| Debt / EquityFinancial leverage | 0.54x | 2.24x |
| Net DebtTotal debt minus cash | $2.9B | $22.1B |
| Cash & Equiv.Liquid assets | $1.8B | $12.5B |
| Total DebtShort + long-term debt | $4.6B | $34.6B |
| Interest CoverageEBIT ÷ Interest expense | 17.21x | 3.92x |
TT leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
TT leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TT five years ago would be worth $27,694 today (with dividends reinvested), compared to $10,364 for HON. Over the past 12 months, TT leads with a +21.0% total return vs HON's +5.5%. The 3-year compound annual growth rate (CAGR) favors TT at 41.3% vs HON's 5.2% — a key indicator of consistent wealth creation.
| Metric | TTTrane Technologie… | HONHoneywell Interna… |
|---|---|---|
| YTD ReturnYear-to-date | +22.9% | +11.3% |
| 1-Year ReturnPast 12 months | +21.0% | +5.5% |
| 3-Year ReturnCumulative with dividends | +182.1% | +16.6% |
| 5-Year ReturnCumulative with dividends | +176.9% | +3.6% |
| 10-Year ReturnCumulative with dividends | +906.7% | +134.6% |
| CAGR (3Y)Annualised 3-year return | +41.3% | +5.2% |
TT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — TT and HON each lead in 1 of 2 comparable metrics.
Risk & Volatility
HON is the less volatile stock with a 0.74 beta — it tends to amplify market swings less than TT's 0.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TT currently trades 97.0% from its 52-week high vs HON's 87.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TTTrane Technologie… | HONHoneywell Interna… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.97x | 0.74x |
| 52-Week HighHighest price in past year | $503.47 | $248.18 |
| 52-Week LowLowest price in past year | $348.06 | $186.76 |
| % of 52W HighCurrent price vs 52-week peak | +97.0% | +87.4% |
| RSI (14)Momentum oscillator 0–100 | 56.8 | 32.3 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 3.7M |
Evenly matched — TT and HON each lead in 1 of 2 comparable metrics.
Analyst Outlook
HON leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TT as "Hold" and HON as "Buy". Consensus price targets imply 12.5% upside for HON (target: $244) vs 6.2% for TT (target: $519). For income investors, HON offers the higher dividend yield at 2.14% vs TT's 0.77%.
| Metric | TTTrane Technologie… | HONHoneywell Interna… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $518.50 | $243.83 |
| # AnalystsCovering analysts | 25 | 28 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | +2.1% |
| Dividend StreakConsecutive years of raises | 5 | 15 |
| Dividend / ShareAnnual DPS | $3.74 | $4.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.4% | +2.8% |
HON leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
TT leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). HON leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Best OverallTrane Technologies plc (TT)Leads 3 of 6 categories
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TT vs HON: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TT or HON a better buy right now?
For growth investors, Honeywell International Inc.
(HON) is the stronger pick with 7. 8% revenue growth year-over-year, versus 7. 5% for Trane Technologies plc (TT). Honeywell International Inc. (HON) offers the better valuation at 29. 5x trailing P/E (20. 6x forward), making it the more compelling value choice. Analysts rate Honeywell International Inc. (HON) a "Buy" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TT or HON?
On trailing P/E, Honeywell International Inc.
(HON) is the cheapest at 29. 5x versus Trane Technologies plc at 37. 6x. On forward P/E, Honeywell International Inc. is actually cheaper at 20. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Trane Technologies plc wins at 1. 10x versus Honeywell International Inc. 's 11. 22x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — TT or HON?
Over the past 5 years, Trane Technologies plc (TT) delivered a total return of +176.
9%, compared to +3. 6% for Honeywell International Inc. (HON). Over 10 years, the gap is even starker: TT returned +906. 7% versus HON's +134. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TT or HON?
By beta (market sensitivity over 5 years), Honeywell International Inc.
(HON) is the lower-risk stock at 0. 74β versus Trane Technologies plc's 0. 97β — meaning TT is approximately 31% more volatile than HON relative to the S&P 500. On balance sheet safety, Trane Technologies plc (TT) carries a lower debt/equity ratio of 54% versus 2% for Honeywell International Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TT or HON?
By revenue growth (latest reported year), Honeywell International Inc.
(HON) is pulling ahead at 7. 8% versus 7. 5% for Trane Technologies plc (TT). On earnings-per-share growth, the picture is similar: Trane Technologies plc grew EPS 15. 5% year-over-year, compared to -15. 5% for Honeywell International Inc.. Over a 3-year CAGR, TT leads at 10. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TT or HON?
Trane Technologies plc (TT) is the more profitable company, earning 13.
7% net margin versus 12. 6% for Honeywell International Inc. — meaning it keeps 13. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TT leads at 18. 6% versus 17. 5% for HON. At the gross margin level — before operating expenses — HON leads at 36. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is TT or HON more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Trane Technologies plc (TT) is the more undervalued stock at a PEG of 1. 10x versus Honeywell International Inc. 's 11. 22x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Honeywell International Inc. (HON) trades at 20. 6x forward P/E versus 32. 9x for Trane Technologies plc — 12. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HON: 12. 5% to $243. 83.
08Which pays a better dividend — TT or HON?
All stocks in this comparison pay dividends.
Honeywell International Inc. (HON) offers the highest yield at 2. 1%, versus 0. 8% for Trane Technologies plc (TT).
09Is TT or HON better for a retirement portfolio?
For long-horizon retirement investors, Trane Technologies plc (TT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
97), 0. 8% yield, +906. 7% 10Y return). Both have compounded well over 10 years (TT: +906. 7%, HON: +134. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between TT and HON?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(TT: 6.0% · HON: -6.9%)Net Margin>
%
(TT: 13.4% · HON: 11.2%)P/E Ratio<
x
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