Contrasting Avery Dennison (NYSE:AVY) and Nine Dragons Paper (OTCMKTS:NDGPY)

Avery Dennison (NYSE:AVY) and Nine Dragons Paper (OTCMKTS:NDGPY) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Avery Dennison and Nine Dragons Paper, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avery Dennison	0	5	6	0	2.55
Nine Dragons Paper	0	0	0	0	0.00

Avery Dennison currently has a consensus price target of $197.50, suggesting a potential upside of 9.87%. Given Avery Dennison’s stronger consensus rating and higher possible upside, analysts plainly believe Avery Dennison is more favorable than Nine Dragons Paper.

Volatility & Risk

Avery Dennison has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Nine Dragons Paper has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Earnings & Valuation

This table compares Avery Dennison and Nine Dragons Paper”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avery Dennison	$8.76 billion	1.61	$704.90 million	$8.68	20.71
Nine Dragons Paper	$8.25 billion	0.24	$107.12 million	N/A	N/A

Avery Dennison has higher revenue and earnings than Nine Dragons Paper.

Profitability

This table compares Avery Dennison and Nine Dragons Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avery Dennison	7.98%	33.11%	9.05%
Nine Dragons Paper	N/A	N/A	N/A

Institutional & Insider Ownership

94.2% of Avery Dennison shares are held by institutional investors. 0.8% of Avery Dennison shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Avery Dennison beats Nine Dragons Paper on 12 of the 12 factors compared between the two stocks.

About Avery Dennison

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally. It provides pressure-sensitive materials comprising papers, plastic films, metal foils, and fabrics; performance tapes products, including tapes for wire harnessing, as well as cable wrapping for automotive, electrical, and general industrial applications; mechanical fasteners, which are precision-extruded and injection-molded plastic devices used in various automotive, general industrial, and retail applications; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, Yongle, and Avery Dennison brands. The company also offers graphics and reflective products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation market segments; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials designed for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it provides branding solutions include brand embellishments, graphic tickets, tags, and labels, and sustainable packaging; and information solutions include item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media solutions, and brand protection and security solutions, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Mentor, Ohio.

About Nine Dragons Paper

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, engages in the production and sale of packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also operates in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited operates as a subsidiary of Best Result Holdings Limited.