Contrasting Trane Technologies (NYSE:TT) and Modine Manufacturing (NYSE:MOD)

Modine Manufacturing (NYSE:MOD) and Trane Technologies (NYSE:TT) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Modine Manufacturing and Trane Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modine Manufacturing	0	2	7	0	2.78
Trane Technologies	1	2	10	2	2.87

Modine Manufacturing presently has a consensus price target of $320.14, suggesting a potential upside of 65.74%. Trane Technologies has a consensus price target of $520.07, suggesting a potential upside of 8.51%. Given Modine Manufacturing’s higher probable upside, analysts clearly believe Modine Manufacturing is more favorable than Trane Technologies.

Volatility and Risk

Modine Manufacturing has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Trane Technologies has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Earnings & Valuation

This table compares Modine Manufacturing and Trane Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modine Manufacturing	$3.18 billion	3.22	$121.50 million	$2.66	72.61
Trane Technologies	$21.32 billion	4.95	$2.92 billion	$13.20	36.31

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

Profitability

This table compares Modine Manufacturing and Trane Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modine Manufacturing	4.28%	25.59%	11.39%
Trane Technologies	13.28%	35.72%	13.65%

Insider and Institutional Ownership

95.2% of Modine Manufacturing shares are held by institutional investors. Comparatively, 83.0% of Trane Technologies shares are held by institutional investors. 1.9% of Modine Manufacturing shares are held by insiders. Comparatively, 0.4% of Trane Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Trane Technologies beats Modine Manufacturing on 10 of the 15 factors compared between the two stocks.

About Modine Manufacturing

Modine Manufacturing Company provides thermal management products and solutions in the United States, Italy, Hungary, China, the United Kingdom, and internationally. It operates through Climate Solutions and Performance Technologies segments. The company offers heat transfer coils, including heat recovery and round tube plate fin coils; gas-fired, hydronic, electric and oilfired unit heaters; roof-mounted direct- and indirect-fired makeup air units; duct furnaces; infrared units; perimeter heating products; single packaged unit ventilators; modular chillers; air handler and condensing units; ceiling cassettes; evaporator unit coolers, remote condensers, fluid coolers, gas coolers, and dry and brine coolers; and motor and generator cooling coils, transformer oil coolers, radiators, dryers, and industrial heat exchangers. It also provides data center products consisting of IT cooling solutions, including precision air conditioning units for data center applications; computer room air conditioning and handler units; hybrid fan coils; fan walls; chillers; condensers; condensing units; and liquid cooling solutions for high-density computing, as well as replacement parts, maintenance service and control solutions for existing equipment and new building management controls and systems. In addition, the company offers powertrain cooling products, such as radiators, condensers, engine cooling modules, charge air coolers, fan shrouds, and surge tanks; cooling module generator sets; aluminum and stainless steel engine oil coolers, exhaust gas recirculation coolers, liquid charge air coolers, transmission and retarder oil coolers, and chillers; battery thermal management systems, electronics cooling packages, battery chillers, battery cooling plates, coolers and casings for electronics cooling, and coolers for electric axles; and coatings products and application services. Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.

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.