Head to Head Contrast: Avery Dennison (AVY) vs. Its Peers

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Avery Dennison and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avery Dennison 0 4 4 0 2.50
Avery Dennison Competitors 84 599 405 6 2.30

Avery Dennison presently has a consensus target price of $109.00, suggesting a potential downside of 5.33%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 5.03%. Given Avery Dennison’s peers higher possible upside, analysts clearly believe Avery Dennison has less favorable growth aspects than its peers.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Avery Dennison $6.09 billion $320.70 million 25.70
Avery Dennison Competitors $4.42 billion $182.22 million 138.58

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.

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 2.78% 22.00% 3.85%

Risk & Volatility

Avery Dennison has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Avery Dennison’s peers have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.

Dividends

Avery Dennison pays an annual dividend of $1.80 per share and has a dividend yield of 1.6%. 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 64.6% of their earnings in the form of a dividend. Avery Dennison has raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

84.8% of Avery Dennison shares are owned by institutional investors. Comparatively, 75.3% of shares of all “Non-Paper Containers & Packaging” companies are owned by institutional investors. 1.4% of Avery Dennison shares are owned by insiders. Comparatively, 7.1% of shares of all “Non-Paper Containers & Packaging” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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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