Is Trane Technologies a Better Buy Than Johnson Controls International?

-12.28%
Downside
142
Market
125
Trefis
JCI: Johnson Controls International logo
JCI
Johnson Controls International

Johnson Controls International surged 10% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Trane Technologies gives you more. 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 Last 12 Months revenue growth was 7.5%, vs. JCI’s 3.4%.
  • In addition, its Last 3-Year Average revenue growth came in at 10.1%, ahead of JCI’s 4.8%.
  • TT leads on profitability over both periods – LTM margin of 18.6% and 3-year average of 17.5%.

These differences become even clearer when you look at the financials side by side. The table highlights how JCI’s fundamentals stack up against those of TT on growth, margins, momentum, and valuation multiples.

Trefis

Valuation & Performance Overview

  JCI TT Preferred
     
Valuation      
P/EBIT Ratio 25.7 24.4 TT
     
Revenue Growth      
Last Quarter 6.8% 5.5% JCI
Last 12 Months 3.4% 7.5% TT
Last 3 Year Average 4.8% 10.1% TT
     
Operating Margins      
Last 12 Months 13.2% 18.6% TT
Last 3 Year Average 11.6% 17.5% TT
     
Momentum      
Last 3 Year Return 114.4% 142.5% 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

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See detailed fundamentals on Buy or Sell TT Stock and Buy or Sell JCI Stock. Below we compare market return and related metrics across years.

Historical Market Performance

  2021 2022 2023 2024 2025 2026 Total [1] Avg Best
Returns
JCI Return 77% -19% -8% 40% 54% 8% 208%    
TT Return 41% -15% 47% 53% 6% 13% 225%   <===
S&P 500 Return 27% -19% 24% 23% 16% 1% 83%    
Monthly Win Rates [3]
JCI Win Rate 92% 42% 42% 58% 75% 50%   60%  
TT Win Rate 67% 33% 67% 83% 50% 100%   67% <===
S&P 500 Win Rate 75% 42% 67% 75% 67% 50%   62%  
Max Drawdowns [4]
JCI Max Drawdown -1% -42% -23% -9% -9% -7%   -15%  
TT Max Drawdown -4% -40% -2% -3% -14% -3%   -11%  
S&P 500 Max Drawdown -1% -25% -1% -2% -15% -1%   -7% <===

[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 2/5/2026 (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.

Still not sure about JCI or TT? Consider portfolio approach.

Stock Picking Falls Short Against Multi Asset Portfolios

Stocks can jump or crash but different assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which 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