Trex Company Inc (TREX)vsTrane Technologies plc (TT)
TREX
Trex Company Inc
$37.30
+1.58%
INDUSTRIALS · Cap: $3.81B
TT
Trane Technologies plc
$434.00
+0.91%
INDUSTRIALS · Cap: $95.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Trane Technologies plc generates 1716% more annual revenue ($21.32B vs $1.17B). TREX leads profitability with a 16.2% profit margin vs 13.7%. TREX appears more attractively valued with a PEG of 1.00. TT earns a higher WallStSmart Score of 52/100 (C-).
TREX
Buy51
out of 100
Grade: C-
TT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-266.0%
Fair Value
$12.04
Current Price
$37.30
$25.26 premium
Margin of Safety
-428.0%
Fair Value
$89.49
Current Price
$434.00
$344.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Every $100 of equity generates 37 in profit
Large-cap with strong market position
Generating 1.1B in free cash flow
Areas to Watch
Operating margin of 2.2%
Weak financial health signals
Revenue declined 3.9%
Earnings declined 89.4%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 11.2x book value
Earnings declined 0.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : TREX
The strongest argument for TREX centers on Altman Z-Score, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at 2.2%. PEG of 1.00 suggests the stock is reasonably priced for its growth.
Bull Case : TT
The strongest argument for TT centers on Return on Equity, Market Cap, Free Cash Flow.
Bear Case : TREX
The primary concerns for TREX are Operating Margin, Piotroski F-Score, Revenue Growth.
Bear Case : TT
The primary concerns for TT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
TREX profiles as a declining stock while TT is a value play — different risk/reward profiles.
TREX carries more volatility with a beta of 1.60 — expect wider price swings.
TT is growing revenue faster at 5.6% — sustainability is the question.
TT generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
TT scores higher overall (52/100 vs 51/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Trex Company Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Trex Company, Inc. manufactures and distributes wood-plastic composite products and related accessories primarily for residential deck and railing applications in the United States. The company is headquartered in Winchester, Virginia.
Trane Technologies plc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Trane Technologies plc is an American Irish domiciled diversified industrial manufacturing company. It is headquartered near Dublin, Ireland.
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