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IR vs TT
Which Stock Would AI Choose? Ingersoll Rand (IR) vs. Trane Technologies (TT) Stock Comparison
Key Takeaways
- Market scale disparity: TT (Trane Technologies) commands a market capitalization roughly three times larger than IR (Ingersoll Rand), with annual revenues of approximately $21.3 billion versus $7.65 billion as of full-year 2025.
- Divergent stock performance: TT has significantly outperformed IR in recent market activity, posting positive year-to-date returns exceeding 20% in 2026, while IR's recovery has been more measured with single-digit gains.
- Backlog strength vs. M&A engine: TT benefits from a record $7.8 billion backlog providing strong revenue visibility, while IR leverages an active M&A (mergers and acquisitions) pipeline and its IRX operational excellence framework to drive growth.
- Valuation contrast: IR trades at a substantially higher price-to-earnings (P/E) ratio than TT, despite TT delivering stronger earnings growth and margin expansion in recent quarters.
- Sector exposure divergence: TT is concentrated in commercial HVAC (heating, ventilation, and air conditioning) and climate solutions, riding powerful secular tailwinds, while IR spans a more diversified industrial portfolio across flow creation, life sciences, and industrial technologies.
- Both maintain strong financial positions: Each company holds robust liquidity, healthy free cash flow generation, and manageable debt levels, positioning them well for varied economic conditions.
Introduction
Comparing IR (Ingersoll Rand) and TT (Trane Technologies) brings two industrial powerhouses with a shared corporate history into focus. Though they once belonged to the same parent entity before separating in 2020, these companies have charted distinctly different paths. Today, Ingersoll Rand operates as a diversified provider of mission-critical flow creation and industrial solutions, while Trane Technologies has emerged as a global climate innovator focused on HVAC and transport refrigeration. This stock comparison is particularly relevant for investors evaluating industrial sector opportunities, those assessing growth-versus-value trade-offs, and traders tracking relative performance between two S&P 500 constituents with differing market positioning and momentum profiles.
IR Overview and Recent Performance
IR, headquartered in Davidson, North Carolina, is a global industrial company operating through two segments: Industrial Technologies & Services (air compressors, vacuum pumps, power tools, blowers) and Precision & Science Technologies (life sciences and specialized industrial solutions). The company has built its competitive identity around Ingersoll Rand Execution Excellence (IRX), an operational discipline framework that emphasizes continuous improvement and an ownership mindset.
In recent quarters, IR has delivered consistent though modest growth. For full-year 2025, the company reported revenues of $7.65 billion, up 6% year-over-year, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $2.09 billion, representing a 4% increase and a margin of 27.4%. Fourth-quarter 2025 showed stronger momentum, with revenues climbing 10% to $2.09 billion and adjusted EBITDA rising 9% to $580 million. The stock, however, faced headwinds throughout 2025, declining roughly 12% for the calendar year as investors weighed macroeconomic uncertainty against the company's organic growth trajectory, which was guided to a range of negative 2% to flat. Looking ahead, management has guided for 2026 revenue growth of 2.5% to 4.5% and adjusted EPS (earnings per share) of $3.45 to $3.57, signaling cautious optimism. IR maintains robust liquidity of $3.8 billion and has been actively deploying capital toward M&A, closing multiple acquisitions in recent months while also returning over $1 billion to shareholders through repurchases and dividends in 2025.
TT Overview and Recent Performance
TT (Trane Technologies), domiciled in Ireland with operational headquarters in North Carolina, is a pure-play climate innovator designing, manufacturing, and servicing HVAC systems and transport refrigeration solutions under its flagship brands: Trane, American Standard, and Thermo King. The company generates approximately 80% of its revenue from North America, with the remainder split between EMEA (Europe, Middle East, and Africa) and Asia-Pacific.
Trane Technologies has posted exceptional results in recent periods. Full-year 2025 revenue reached $21.3 billion, up 7% year-over-year, with adjusted continuing EPS of $13.06, a 16% increase. Adjusted EBITDA margin expanded 70 basis points to 20.1%, while free cash flow conversion reached an impressive 98%. The standout metric has been bookings momentum: organic bookings rose 11% for the full year, led by Americas Commercial HVAC surging 22%. In the fourth quarter of 2025 alone, organic bookings jumped 22%, driving the company's backlog to a record $7.8 billion — up 15% from year-end 2024. The company's applied HVAC solutions business more than doubled bookings in the fourth quarter, reflecting extraordinary demand for large-scale commercial and industrial climate systems. TT stock has responded accordingly, gaining approximately 21% year-to-date in 2026, building on a 6% gain in 2025 as investor confidence in the company's secular growth narrative has strengthened.
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Head-to-Head Comparison
Despite their shared ancestry, IR and TT now occupy meaningfully different positions in the market landscape. Here is how they compare across key dimensions:
- Business model and focus: TT is a concentrated climate solutions play with dominant positions in commercial HVAC — a sector benefiting from powerful secular drivers including energy efficiency mandates, data center expansion, and building electrification. IR is a broader industrial conglomerate spanning compressors, vacuum pumps, power tools, and life sciences equipment, making it more sensitive to general industrial production cycles.
- Growth momentum: TT holds a clear advantage in recent periods. Its record backlog of $7.8 billion, driven by triple-digit growth in applied HVAC bookings, provides visibility that IR's more cyclical end markets cannot match. IR's organic growth has been comparatively subdued, with management guiding toward low-single-digit expansion in 2026.
- Margin profiles: IR boasts a higher adjusted EBITDA margin (27.4% for full-year 2025) compared to TT (20.1%), reflecting the capital-light nature of certain IR business lines. However, TT has demonstrated steadier margin expansion, adding 70 basis points in 2025, whereas IR's margin trajectory has been flatter.
- Risk factors: TT faces concentration risk with its heavy reliance on North American commercial HVAC markets and vulnerability to any slowdown in non-residential construction. IR's diversification across end markets provides some cushion, but its exposure to industrial production and manufacturing cycles introduces different sensitivities.
- Valuation: IR's P/E ratio sits substantially above TT's, a notable anomaly given TT's stronger earnings growth and more favorable demand backdrop. TT's higher absolute market capitalization and premium valuation on a price-to-free-cash-flow basis reflect the market's willingness to pay for the company's superior growth narrative.
Tickeron AI Verdict
Based on observable market data and trend analysis, Tickeron's AI-driven framework would likely favor TT (Trane Technologies) in the current environment. The rationale centers on several reinforcing factors: TT's record backlog provides exceptional forward revenue visibility, its organic bookings growth has accelerated meaningfully, and the secular tailwinds supporting commercial HVAC demand — particularly from data center construction and building decarbonization — show no signs of abating. TT's price trend has also demonstrated greater consistency and upward momentum in recent months, while IR's more cyclical exposure and comparatively modest organic growth guidance suggest a less compelling near-term trajectory. That said, this probabilistic assessment does not negate IR's strengths, including its higher margin structure, active M&A strategy, and the potential for a re-rating if industrial demand accelerates. The AI verdict reflects a relative preference based on trend consistency, catalyst density, and positioning within current market conditions — not an absolute judgment on either company's long-term prospects.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is IR is a Buy and TT is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
IR’s FA Score shows that 0 FA rating(s) are green whileTT’s FA Score has 2 green FA rating(s).
- IR’s FA Score: 0 green, 5 red.
- TT’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
IR’s TA Score shows that 4 TA indicator(s) are bullish while TT’s TA Score has 6 bullish TA indicator(s).
- IR’s TA Score: 4 bullish, 4 bearish.
- TT’s TA Score: 6 bullish, 4 bearish.
Price Growth
IR (@Industrial Machinery) experienced а +4.65% price change this week, while TT (@Building Products) price change was +8.72% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +4.36%. For the same industry, the average monthly price growth was +0.73%, and the average quarterly price growth was +0.32%.
The average weekly price growth across all stocks in the @Building Products industry was +8.97%. For the same industry, the average monthly price growth was +9.90%, and the average quarterly price growth was -1.99%.
Reported Earning Dates
IR is expected to report earnings on Nov 04, 2026.
TT is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Industrial Machinery (+4.36% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
@Building Products (+8.97% weekly)The industry manufactures products used in the construction of residential and commercial buildings. The process involves using materials and other products, and processing them to create finished items such as doors, windows, light fittings, floor coverings, climate control products and other building components and home improvement products. Masco Corporation, Allegion PLC and Lennox International Inc. are major manufacturers of such products.
| IR | TT | IR / TT | |
| Capitalization | 33.7B | 106B | 32% |
| EBITDA | 2B | 4.34B | 46% |
| Gain YTD | 11.442 | 23.562 | 49% |
| P/E Ratio | 35.94 | 35.94 | 100% |
| Revenue | 7.94B | 22.2B | 36% |
| Total Cash | 1.17B | 1.32B | 89% |
| Total Debt | 4.83B | 4.62B | 105% |
IR | TT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 33 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 66 Overvalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 50 | 10 | |
SMR RATING 1..100 | 75 | 28 | |
PRICE GROWTH RATING 1..100 | 45 | 38 | |
P/E GROWTH RATING 1..100 | 89 | 45 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
IR's Valuation (66) in the Industrial Conglomerates industry is in the same range as TT (78) in the null industry. This means that IR’s stock grew similarly to TT’s over the last 12 months.
TT's Profit vs Risk Rating (10) in the null industry is somewhat better than the same rating for IR (50) in the Industrial Conglomerates industry. This means that TT’s stock grew somewhat faster than IR’s over the last 12 months.
TT's SMR Rating (28) in the null industry is somewhat better than the same rating for IR (75) in the Industrial Conglomerates industry. This means that TT’s stock grew somewhat faster than IR’s over the last 12 months.
TT's Price Growth Rating (38) in the null industry is in the same range as IR (45) in the Industrial Conglomerates industry. This means that TT’s stock grew similarly to IR’s over the last 12 months.
TT's P/E Growth Rating (45) in the null industry is somewhat better than the same rating for IR (89) in the Industrial Conglomerates industry. This means that TT’s stock grew somewhat faster than IR’s over the last 12 months.
| IR | TT | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 56% | 1 day ago 58% |
| Stochastic ODDS (%) | 1 day ago 63% | 1 day ago 49% |
| Momentum ODDS (%) | 1 day ago 72% | 1 day ago 72% |
| MACD ODDS (%) | 1 day ago 64% | 1 day ago 74% |
| TrendWeek ODDS (%) | 1 day ago 68% | 1 day ago 67% |
| TrendMonth ODDS (%) | 1 day ago 65% | 1 day ago 66% |
| Advances ODDS (%) | 4 days ago 66% | 4 days ago 66% |
| Declines ODDS (%) | 1 day ago 58% | 10 days ago 56% |
| BollingerBands ODDS (%) | 1 day ago 50% | 1 day ago 74% |
| Aroon ODDS (%) | 1 day ago 64% | 1 day ago 61% |
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IR and
Correlation & Price change
A.I.dvisor indicates that over the last year, IR has been closely correlated with JCI. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if IR jumps, then JCI could also see price increases.