Avery Dennison Corporation (NYSE: AVY) and On Track Innovations (NASDAQ:OTIV) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitabiliy and valuation.

Profitability

This table compares Avery Dennison Corporation and On Track Innovations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avery Dennison Corporation 5.56% 38.48% 8.39%
On Track Innovations -4.08% -19.26% -8.50%

Dividends

Avery Dennison Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. On Track Innovations does not pay a dividend. Avery Dennison Corporation pays out 47.4% of its earnings in the form of a dividend. Avery Dennison Corporation has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for Avery Dennison Corporation and On Track Innovations, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avery Dennison Corporation 0 3 3 0 2.50
On Track Innovations 0 0 0 0 N/A

Avery Dennison Corporation presently has a consensus price target of $81.00, indicating a potential downside of 5.21%. Given Avery Dennison Corporation’s higher possible upside, equities analysts clearly believe Avery Dennison Corporation is more favorable than On Track Innovations.

Institutional and Insider Ownership

89.3% of Avery Dennison Corporation shares are held by institutional investors. Comparatively, 5.6% of On Track Innovations shares are held by institutional investors. 1.4% of Avery Dennison Corporation shares are held by company insiders. Comparatively, 2.2% of On Track Innovations shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Avery Dennison Corporation has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, On Track Innovations has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Earnings and Valuation

This table compares Avery Dennison Corporation and On Track Innovations’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avery Dennison Corporation $6.17 billion 1.23 $749.60 million $3.80 22.49
On Track Innovations $20.01 million 2.57 -$512,000.00 ($0.02) -62.51

Avery Dennison Corporation has higher revenue and earnings than On Track Innovations. On Track Innovations is trading at a lower price-to-earnings ratio than Avery Dennison Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Avery Dennison Corporation beats On Track Innovations on 11 of the 15 factors compared between the two stocks.

About Avery Dennison Corporation

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.

About On Track Innovations

On Track Innovations Ltd. is a developer of cashless payment solutions. The Company’s segments include Retail and Mass Transit, Petroleum, Parking and Other. The Company offers solutions for banking, mobile network operators, vending, mass transit, petroleum and parking. The Company provides its customers with training and installation support, customer service and technical support. Its PayEnable technology can be implemented into a range of products. Its Retail and Mass Transit products include TRIO mPOS, Pico BT, WAVE, WAVE PKI, oti SATURN 6700 UNO, oti SATURN 6500 TRIO and oti SCI 6000. It also offers otiMetry and oti CONNECT 3000. Its EasyFuel Plus solution is a wireless, cashless, cardless and paperless refueling tracking and payment solution. Its EasyPark set of parking solutions provides parking fee collection, parking payment enforcement and parking management solution. Its MediSmart solution is an information management and claims submission system for the medical sector.

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