MIDD vs REZI: Which Industrial Equipment Stock Is the Better Buy?

Middleby (NASDAQ:MIDD | MIDD Price Prediction) and Resideo Technologies (NYSE:REZI) both reported Q4 2025 earnings and are each splitting into separate companies. The similarity ends there. One is a commercial kitchen equipment maker shedding its consumer business. The other is a smart home and security distributor untangling a massive distribution arm from its branded products division.

Transformation Fatigue Hits Middleby. Resideo Keeps Its Momentum.

Middleby’s Q4 numbers looked ugly on the surface. Revenue came in at $866 million, missing estimates by over 12%. But the miss almost entirely reflects the restatement that removed Residential Kitchen as discontinued operations following the sale of a 51% stake to 26North at an $885 million enterprise valuation. Management says results exceeded expectations on a like-for-like basis. What remains: Commercial Foodservice at $602 million with double-digit dealer channel growth, and Food Processing at $265 million with record Q4 orders up 66% organically and backlog up 36%.

Resideo told a cleaner story. Q4 revenue hit $1.90 billion, beating consensus by 2.36%. Full-year adjusted EBITDA reached a record $833 million, up 20%. The Products & Solutions segment posted its 11th consecutive quarter of year-over-year gross margin expansion, and the Snap One integration delivered approximately $75 million in synergies 18 months ahead of schedule. CEO Jay Geldmacher put it plainly: “Resideo exceeded the high-end of our outlook range for all of our key financial metrics and achieved record highs in net revenue, Adjusted EBITDA and Adjusted EPS.”

Pure-Play Bets Versus a Distribution Giant Finding Its Footing

Middleby CEO Tim FitzGerald is betting that separating Food Processing unlocks value the market has refused to price in. “Each business will emerge with enhanced focus, optimized capital structures, and the resources to maximize growth in their respective markets.” The company also deployed $710 million in share repurchases in 2025, reducing share count by roughly 9%., an aggressive signal of management conviction.

Resideo’s vulnerability is the Q4 adjusted EPS miss. Adjusted EPS came in at $0.50 against an estimate of $0.765. The full-year GAAP picture is complicated by a $1.59 billion Honeywell Indemnification Agreement termination expense that drove a reported net loss. Operationally the business is healthy, but the debt load of $3.23 billion deserves attention.

The Next Test Is Execution Through the Spin

Watch whether Middleby’s Food Processing backlog converts to revenue on schedule. The 6-to-12-month order-to-delivery window means record backlog of $410 million should show up in 2026 results. For Resideo, track whether the ElitePRO thermostat and new security products gain shelf velocity as housing conditions stabilize. Management guided 2026 revenue of $7.80 to $7.90 billion with adjusted EPS of $3.00 to $3.20.

Valuation Comparison: Resideo at a Discount, Middleby at a Premium

At a forward P/E of 11x and price-to-sales of 0.68x, Resideo trades at a lower multiple than Middleby despite generating nearly $7.5 billion in annual revenue. Eleven consecutive quarters of margin expansion reflect ongoing operational improvement. Middleby’s restructuring story carries execution risk ahead of the Food Processing spin, while Resideo’s valuation reflects a different risk profile. These valuation differences and execution risks represent key factors analysts and observers are monitoring as both companies move through their respective separations.