Trane (NYSE:TT) versus SUEZ/ADR (NYSE:SZEVY) Critical Review

Trane (NYSE:TT) and SUEZ/ADR (OTCMKTS:SZEVY) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares Trane and SUEZ/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trane $16.60 billion 1.02 $1.41 billion $6.37 11.19
SUEZ/ADR $20.18 billion 0.31 $394.29 million N/A N/A

Trane has higher earnings, but lower revenue than SUEZ/ADR.

Insider & Institutional Ownership

81.9% of Trane shares are owned by institutional investors. Comparatively, 0.1% of SUEZ/ADR shares are owned by institutional investors. 0.6% of Trane shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Trane and SUEZ/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trane 8.50% 21.72% 7.67%
SUEZ/ADR N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Trane and SUEZ/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trane 0 3 4 0 2.57
SUEZ/ADR 2 2 2 0 2.00

Trane presently has a consensus price target of $108.14, suggesting a potential upside of 51.76%. Given Trane’s stronger consensus rating and higher possible upside, equities analysts plainly believe Trane is more favorable than SUEZ/ADR.

Volatility & Risk

Trane has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, SUEZ/ADR has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Dividends

Trane pays an annual dividend of $2.12 per share and has a dividend yield of 3.0%. SUEZ/ADR pays an annual dividend of $0.26 per share and has a dividend yield of 5.3%. Trane pays out 33.3% of its earnings in the form of a dividend.

Summary

Trane beats SUEZ/ADR on 11 of the 14 factors compared between the two stocks.

About Trane

Ingersoll-Rand Plc designs, manufactures, sells, and services industrial and commercial products. The company operates through Climate and Industrial segments. The Climate segment offers air conditioners, exchangers, and handlers; airside and terminal devices; auxiliary power units; chillers; coils and condensers; gensets; furnaces; heat pumps; home automation; humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality; industrial refrigeration; motor replacements; refrigerant reclamation; thermostats/controls; transport heater products; and water source heat pumps. It also provides building management; bus, rail, and multi-pipe hvac; control; container, cryogenic, diesel-powered, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration; ductless; geothermal; package heating and cooling; temporary heating and cooling; and unitary systems, as well as aftermarket and OEM parts and supplies. In addition, this segment offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. The Industrial segment provides air treatment and separation, engine starting, ergonomic material handling, fluid handling, precision fastening, and mobile golf information systems; and airends, blowers, compressors, dryers, filters, golf vehicles, hoists, fluid power components, power tools, pumps, rough terrain vehicles, utility and low-speed vehicles, and winches, as well as aftermarket controls, parts, accessories, and consumables. It also provides aftermarket and OEM parts and supplies. The company markets and sells its products under the American Standard, ARO, Club Car, Nexia, Thermo King, and Trane brands through sales offices, distributors, and dealers in the United States; and through sales and service companies with a supporting chain of distributors worldwide. Ingersoll-Rand Plc was founded in 1871 and is headquartered in Swords, Ireland.

About SUEZ/ADR

Suez SA, together with its subsidiaries, engages in the water and waste cycle management business in France, Europe, and internationally. The company operates through five segments: Water Europe, Recycling and Recovery Europe, International, Water Technologies & Solutions, and Other. It provides water distribution and treatment services to individuals, local authorities, and industrial clients; and waste collection and treatment services, including collection, sorting, recycling, composting, energy recovery, and landfilling for non-hazardous and hazardous waste for local authorities and industrial clients. The company also offers water network management services; technical assistance, operation, cleaning, and maintenance services; and spare parts, refurbishment, and associated services, as well as designs and operates storage facilities for hazardous and non-hazardous residual waste. In addition, it provides resource management consulting services; engineering and construction contracts and other services; and digital technology solutions for resource and asset protection, as well as deconstructs industrial sites in the end-of-life phase and decontaminates soil and water tables. Additionally, the company generates waste wood biomass energy, as well as engages in plastic recycling activities. It serves food and beverage, chemical and pharmaceutical, construction, mining and metal, oil and gas, power, pulp and paper, electronic and electronic products, leisure, and healthcare industries, as well as automotive, transport, and aeronautic sectors. Suez SA was founded in 1858 and is headquartered in Paris, France.

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