Over the past three months, one of the leaders of growth in the S&P 500 index was the Building Products industry (+21.4%).
The largest companies in this industry (by market capitalization): Trane Technologies ($87.6B) and Carrier Global ($72.2B). They both manufacture air conditioning and heating systems in the United States.
According to the latest quarterly reporting data, we analyzed the profitability, strength, and efficiency criteria for each company according to the methodology of Stanford University professor Joseph Piotroski.
As we can see, in terms of fundamental data, Trane Technologies demonstrates stronger results. The company outperforms its competitor Carrier Global in terms of profitability, sustainability and efficiency.
Over the past 3 months, Trane Technologies shares have risen by +17.0% and Carrier Global by +27.7% (the S&P 500 index is up +3.1%). Both companies demonstrated better results compared to the index.
So, the winner in this issue is Trane Technologies. Although Carrier Global’s shares show better returns, Trane Technologies’ business is superior in terms of accumulation, financing, and asset turnover.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
