Trane Technologies vs Johnson Controls International: Which Is the Stronger Buy Today?
Even as Johnson Controls International surged 8.8% during the past Day, its peer Trane Technologies may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Trane Technologies (TT) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Johnson Controls International (JCI) stock, suggesting you may be better off investing in TT
- TT’s quarterly revenue growth was 5.5%, vs. JCI’s 2.6%.
- In addition, its Last 3-Year Average revenue growth came in at 10.8%, ahead of JCI’s -0.9%.
- TT leads on profitability over both periods – LTM margin of 18.8% and 3-year average of 17.4%.
A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. Trefis works with Empirical Asset Management — a Boston area wealth manager — whose asset allocation strategies yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Empirical has incorporated the Trefis HQ Portfolio in this asset allocation framework to provide clients with higher returns while taking on lower levels of risk versus the benchmark index.
JCI provides engineering, manufacturing, installation, and servicing of HVAC, controls, security, fire detection, refrigeration systems, and related software for residential and commercial buildings. TT designs, manufactures, and services heating, ventilation, air conditioning, and refrigeration solutions, including building management and specialized systems, marketed through various sales channels.
Valuation & Performance Overview
- After JCI’s 7.4% Single Day Slide, ALLE Looks Like the Stronger Long-Term Play
- JCI Lost 7.4% In A Day. Do You Buy Or Wait?
- Large Cap Stocks Trading At 52-Week High
- Large Cap Stocks Trading At 52-Week High
- How Will Johnson Controls Stock React To Its Upcoming Earnings?
- Now Is Not The Time To Buy Johnson Controls Stock
| JCI | TT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 27.3 | 24.5 | TT |
| Revenue Growth | |||
| Last Quarter | 2.6% | 5.5% | TT |
| Last 12 Months | 22.2% | 8.6% | JCI |
| Last 3 Year Average | -0.9% | 10.8% | TT |
| Operating Margins | |||
| Last 12 Months | 12.4% | 18.8% | TT |
| Last 3 Year Average | 11.1% | 17.4% | TT |
| Momentum | |||
| Last 3 Year Return | 101.8% | 171.4% | TT |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: JCI Revenue Comparison | TT Revenue Comparison
See more margin details: JCI Operating Income Comparison | TT Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell TT Stock to see if Trane Technologies’s edge holds up under the hood or if Johnson Controls International still has cards to play (see Buy or Sell JCI Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| JCI Return | 18% | 77% | -19% | -8% | 40% | 55% | 219% | ||
| TT Return | 44% | 41% | -15% | 47% | 53% | 18% | 375% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% | ||
| Monthly Win Rates [3] | |||||||||
| JCI Win Rate | 75% | 92% | 42% | 42% | 58% | 70% | 63% | ||
| TT Win Rate | 67% | 67% | 33% | 67% | 83% | 60% | 63% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| JCI Max Drawdown | -42% | -1% | -42% | -23% | -9% | -9% | -21% | ||
| TT Max Drawdown | -30% | -4% | -40% | -2% | -3% | -14% | -16% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/5/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read TT Dip Buyer Analyses and JCI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.