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FDX vs TT

FDX
FedEx Corporation
NEUTRAL
Price
$360.32
Market Cap
$85.98B
Sector
Industrials
AI Confidence
85%
TT
Trane Technologies plc
BULLISH
Price
$418.16
Market Cap
$92.72B
Sector
Industrials
AI Confidence
88%

Valuation

P/E Ratio
FDX
19.23
TT
31.95
Forward P/E
FDX
16.15
TT
33.06
P/B Ratio
FDX
2.89
TT
11.15
P/S Ratio
FDX
0.94
TT
4.4
EV/EBITDA
FDX
--
TT
22.88

Profitability

Gross Margin
FDX
27.55%
TT
36.42%
Operating Margin
FDX
7.64%
TT
20.22%
Profit Margin
FDX
4.88%
TT
13.93%
ROE
FDX
15.87%
TT
37.21%
ROA
FDX
5.03%
TT
11.42%

Growth

Revenue Growth
FDX
13.9%
TT
5.5%
Earnings Growth
FDX
-13.3%
TT
11.4%

Financial Health

Debt/Equity
FDX
--
TT
0.55
Current Ratio
FDX
1.47
TT
1.21
Quick Ratio
FDX
1.16
TT
0.8

Dividends

Dividend Yield
FDX
1.63%
TT
0.9%
Payout Ratio
FDX
30.59%
TT
28.0%

AI Verdict

FDX NEUTRAL

FDX shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong ROE of 15.9%
Risks
Premium vs Graham Number ($229.31)
Low profit margin of 4.9%
TT BULLISH

Trane Technologies (TT) trades at a premium valuation with strong profitability and consistent earnings execution, outperforming peers on ROE and margin discipline despite elevated multiples. The company has delivered 21 of the last 25 quarters beating EPS estimates, with a 5-year return of +193.4%, reflecting durable shareholder value creation amid resilient HVAC demand and operational efficiency. While insider selling raises minor concerns, robust analyst conviction (18 analysts, Buy rating) and a healthy balance sheet support continued outperformance. TT’s growth trajectory and capital allocation discipline position it favorably within the industrials sector, particularly against lower-growth peers like 3M and underperforming Lockheed Martin.

Strengths
Exceptional profitability: ROE of 37.21% significantly exceeds sector average of 35.76% and peer HON (34.62%)
Superior margin profile: Operating margin of 20.22% and gross margin of 36.42% reflect pricing power and cost control
Consistent earnings outperformance: 21 of last 25 quarters beat EPS estimates, with 4-quarter average surprise of 8.83%
Risks
Rich valuation: P/E of 31.94 and Forward P/E of 33.06 are substantially above sector average (27.01) and close peers like HON (21.02)
Recent insider selling: CEO and officers sold $9.66M in shares over last 6 months, signaling potential lack of near-term confidence
Near-term price weakness: -3.8% over 1 week and -2.1% over 6 months despite strong fundamentals, suggesting sentiment lag

Compare Another Pair

FDX vs TT: Head-to-Head Comparison

This page compares FedEx Corporation (FDX) and Trane Technologies plc (TT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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