Comparing Hayward (NYSE:HAYW) & Trane Technologies (NYSE:TT)

Trane Technologies (NYSE:TT) and Hayward (NYSE:HAYW) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Volatility & Risk

Trane Technologies has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Hayward has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Institutional & Insider Ownership

83.0% of Trane Technologies shares are held by institutional investors. 0.4% of Trane Technologies shares are held by insiders. Comparatively, 4.7% of Hayward shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Trane Technologies and Hayward”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trane Technologies	$21.32 billion	4.60	$2.92 billion	$13.20	33.74
Hayward	$1.12 billion	2.39	$151.57 million	$0.74	17.09

Trane Technologies has higher revenue and earnings than Hayward. Hayward is trading at a lower price-to-earnings ratio than Trane Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Trane Technologies and Hayward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trane Technologies	13.28%	35.72%	13.65%
Hayward	13.83%	11.61%	5.91%

Analyst Ratings

This is a summary of recent recommendations for Trane Technologies and Hayward, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trane Technologies	0	4	14	2	2.90
Hayward	1	6	2	0	2.11

Trane Technologies presently has a consensus price target of $539.42, suggesting a potential upside of 21.10%. Hayward has a consensus price target of $16.62, suggesting a potential upside of 31.47%. Given Hayward’s higher probable upside, analysts plainly believe Hayward is more favorable than Trane Technologies.

Summary

Trane Technologies beats Hayward on 11 of the 15 factors compared between the two stocks.

About Trane Technologies

Trane 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.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.