Financial Analysis: Avery Dennison (AVY) versus Its Rivals

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 competitors? We will compare Avery Dennison to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Profitability

This table compares Avery Dennison and its competitors’ 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%

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 50.6% of their earnings in the form of a dividend. Avery Dennison has raised its dividend for 6 consecutive years.

Risk & Volatility

Avery Dennison has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Avery Dennison’s competitors have a beta of 1.21, meaning that their average stock price is 21% more volatile than the S&P 500.

Insider and Institutional 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Avery Dennison and its competitors, as provided 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 83 597 403 6 2.30

Avery Dennison presently has a consensus price target of $109.00, suggesting a potential downside of 6.92%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 4.61%. Given Avery Dennison’s competitors higher possible upside, analysts plainly believe Avery Dennison has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Avery Dennison and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Avery Dennison $6.09 billion $320.70 million 26.14
Avery Dennison Competitors $4.42 billion $182.22 million 144.69

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

Summary

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

About Avery Dennison

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.

Receive News & Ratings for Avery Dennison Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avery Dennison and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply