Head-To-Head Analysis: Carrier Global (NYSE:CARR) versus Resideo Technologies (NYSE:REZI)

Carrier Global (NYSE:CARR) and Resideo Technologies (NYSE:REZI) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Risk & Volatility

Carrier Global has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Resideo Technologies has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Profitability

This table compares Carrier Global and Resideo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carrier Global	5.52%	14.68%	5.51%
Resideo Technologies	5.37%	17.79%	5.13%

Earnings and Valuation

This table compares Carrier Global and Resideo Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carrier Global	$22.11 billion	2.05	$1.48 billion	$1.44	38.11
Resideo Technologies	$7.65 billion	0.36	-$527.00 million	$2.26	8.12

Carrier Global has higher revenue and earnings than Resideo Technologies. Resideo Technologies is trading at a lower price-to-earnings ratio than Carrier Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Carrier Global and Resideo Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carrier Global	0	9	11	1	2.62
Resideo Technologies	1	2	2	0	2.20

Carrier Global currently has a consensus target price of $73.60, indicating a potential upside of 34.13%. Resideo Technologies has a consensus target price of $37.50, indicating a potential upside of 104.29%. Given Resideo Technologies’ higher probable upside, analysts clearly believe Resideo Technologies is more favorable than Carrier Global.

Insider & Institutional Ownership

91.0% of Carrier Global shares are owned by institutional investors. Comparatively, 91.7% of Resideo Technologies shares are owned by institutional investors. 6.5% of Carrier Global shares are owned by company insiders. Comparatively, 1.6% of Resideo Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Carrier Global beats Resideo Technologies on 10 of the 15 factors compared between the two stocks.

About Carrier Global

Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers. Its products include air conditioners, heating systems, heat pumps, controls, and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions. The Refrigeration segment offers transport refrigeration and monitoring products and services, as well as digital solutions for trucks, trailers, shipping containers, intermodal applications, food retail, and warehouse cooling; and commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems, and controls. The Fire & Security segment provides various residential, commercial, and industrial technologies, including fire, flame, gas, smoke, and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. This segment also offers fire and security service, such as audit, design, installation, and system integration, as well as aftermarket maintenance and repair and monitoring services. It offers its products under the Autronica, Det-Tronics, Edwards, Aritech, Fireye, GST, Kidde, LenelS2, Marioff, Onity, and Supra; Carrier, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, and Riello; and Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech brands. Carrier Global Corporation was incorporated in 2019 and is headquartered in Palm Beach Gardens, Florida.

About Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.