Financial Contrast: Avery Dennison (NYSE:AVY) vs. Its Rivals

Avery Dennison (NYSE: AVY) is one of 15 public companies in the “Non-Paper Containers & Packaging” industry, but how does it contrast to its peers? We will compare Avery Dennison to similar companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Avery Dennison and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avery Dennison 0 4 4 0 2.50
Avery Dennison Competitors 97 609 415 6 2.29

Avery Dennison currently has a consensus price target of $109.00, indicating a potential downside of 11.15%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 5.84%. Given Avery Dennison’s peers higher probable upside, analysts plainly believe Avery Dennison has less favorable growth aspects than its peers.

Dividends

Avery Dennison pays an annual dividend of $1.80 per share and has a dividend yield of 1.5%. Avery Dennison pays out 40.2% of its earnings in the form of a dividend. As a group, “Non-Paper Containers & Packaging” companies pay a dividend yield of 2.2% and pay out 59.9% of their earnings in the form of a dividend. Avery Dennison has increased its dividend for 7 consecutive years.

Profitability

This table compares Avery Dennison and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avery Dennison 6.27% 40.52% 8.60%
Avery Dennison Competitors 2.82% 22.99% 4.08%

Institutional & Insider Ownership

85.5% of Avery Dennison shares are held by institutional investors. Comparatively, 75.4% of shares of all “Non-Paper Containers & Packaging” companies are held by institutional investors. 1.4% of Avery Dennison shares are held by insiders. Comparatively, 7.1% of shares of all “Non-Paper Containers & Packaging” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Avery Dennison has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Avery Dennison’s peers have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.

Valuation & Earnings

This table compares Avery Dennison and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Avery Dennison $6.09 billion $320.70 million 27.38
Avery Dennison Competitors $4.42 billion $182.22 million 153.00

Avery Dennison has higher revenue and earnings than its peers. Avery Dennison is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Avery Dennison beats its peers on 10 of the 15 factors compared.

Avery Dennison Company Profile

Avery Dennison Corporation (Avery Dennison) is engaged in the production of pressure-sensitive materials and a range of tickets, tags, labels and other converted products. The Company’s segments include Label and Graphic Materials (LGM); Retail Branding and Information Solutions (RBIS), and Industrial and Healthcare Materials (IHM). The Company’s LGM segment manufactures and sells Fasson-, JAC-, and Avery Dennison-brand pressure-sensitive label and packaging materials, Avery Dennison- and Mactac-brand graphics, and Avery Dennison-brand reflective products. The Company’s RBIS segment designs, manufactures and sells a range of branding and information solutions to retailers, brand owners, apparel manufacturers, distributors and industrial customers on a global basis. The Company’s IHM segment manufactures and sells Fasson-brand and Avery Dennison-brand tapes and fasteners, Vancive-brand medical pressure-sensitive adhesive (PSA) based materials and products, and performance polymers.

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