Head-To-Head Analysis: Avery Dennison Corporation (AVY) versus Bemis (NYSE:BMS)
Avery Dennison Corporation (NYSE: AVY) and Bemis (NYSE:BMS) are both mid-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitabiliy and dividends.
Insider & Institutional Ownership
87.0% of Avery Dennison Corporation shares are held by institutional investors. Comparatively, 79.6% of Bemis shares are held by institutional investors. 1.4% of Avery Dennison Corporation shares are held by company insiders. Comparatively, 1.1% of Bemis shares are held 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.
Risk and Volatility
Avery Dennison Corporation has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Bemis has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
Earnings & Valuation
This table compares Avery Dennison Corporation and Bemis’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Avery Dennison Corporation||$6.17 billion||1.31||$749.60 million||$3.80||24.02|
|Bemis||$4.03 billion||1.05||$586.60 million||$2.44||18.94|
Avery Dennison Corporation has higher revenue and earnings than Bemis. Bemis 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.
This is a breakdown of recent recommendations for Avery Dennison Corporation and Bemis, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avery Dennison Corporation||0||2||4||0||2.67|
Avery Dennison Corporation currently has a consensus price target of $86.25, suggesting a potential downside of 5.50%. Bemis has a consensus price target of $46.56, suggesting a potential upside of 0.73%. Given Bemis’ higher possible upside, analysts plainly believe Bemis is more favorable than Avery Dennison Corporation.
Avery Dennison Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Bemis pays an annual dividend of $1.20 per share and has a dividend yield of 2.6%. Avery Dennison Corporation pays out 47.4% of its earnings in the form of a dividend. Bemis pays out 49.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Avery Dennison Corporation has raised its dividend for 33 consecutive years and Bemis has raised its dividend for 6 consecutive years.
This table compares Avery Dennison Corporation and Bemis’ 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%|
Avery Dennison Corporation beats Bemis on 14 of the 17 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.
Bemis Company, Inc. is a manufacturer of packaging products. The Company operates through two segments: U.S. Packaging and Global Packaging. The U.S. Packaging segment represents all food, consumer, and industrial products packaging-related manufacturing operations located in the United States. The Global Packaging segment includes all packaging-related manufacturing operations located outside of the United States, as well as global medical device and pharmaceutical packaging-related manufacturing operations. This segment manufactures multilayer polymer, blown and cast film structures to produce packaging sold for a range of food, medical, pharmaceutical, personal care, electronics, and industrial applications. Its products are sold to customers in the food industry. The Company’s other customers include companies in various types of businesses, including chemical, agribusiness, medical, pharmaceutical, personal care, electronics, construction, and other consumer goods.
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