Avery Dennison (NYSE: AVY) is one of 15 public companies in the “Non-Paper Containers & Packaging” industry, but how does it compare to its peers? We will compare Avery Dennison to similar companies based on the strength of its earnings, profitability, valuation, institutional ownership, dividends, analyst recommendations and risk.
Volatility & Risk
Avery Dennison has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Avery Dennison’s peers have a beta of 1.21, indicating that their average stock price is 21% more volatile than the S&P 500.
This is a summary of current ratings for Avery Dennison and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avery Dennison Competitors||93||604||410||6||2.30|
Avery Dennison currently has a consensus target price of $109.00, suggesting a potential downside of 8.67%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 4.12%. Given Avery Dennison’s peers higher possible upside, analysts clearly believe Avery Dennison has less favorable growth aspects than its peers.
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 49.3% of their earnings in the form of a dividend. Avery Dennison has raised its dividend for 7 consecutive years.
Valuation & Earnings
This table compares Avery Dennison and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Avery Dennison||$6.09 billion||$320.70 million||26.64|
|Avery Dennison Competitors||$4.42 billion||$182.22 million||148.24|
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.
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 Competitors||2.82%||22.99%||4.08%|
Insider and Institutional Ownership
84.8% of Avery Dennison shares are held by institutional investors. Comparatively, 75.3% 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, large money managers and endowments believe a company is poised for long-term growth.
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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