Avery Dennison (AVY) and Its Competitors Head-To-Head Review

Avery Dennison (NYSE: AVY) is one of 15 publicly-traded companies in the “Non-Paper Containers & Packaging” industry, but how does it compare to its competitors? We will compare Avery Dennison to related companies based on the strength of its analyst recommendations, institutional ownership, earnings, dividends, valuation, risk and profitability.

Institutional and Insider Ownership

84.9% of Avery Dennison shares are owned by institutional investors. Comparatively, 75.4% of shares of all “Non-Paper Containers & Packaging” companies are owned by institutional investors. 1.4% of Avery Dennison shares are owned by company insiders. Comparatively, 7.1% of shares of all “Non-Paper Containers & Packaging” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Avery Dennison and its competitors, as reported 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 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 competitors higher probable upside, analysts plainly believe Avery Dennison has less favorable growth aspects than its competitors.

Volatility and Risk

Avery Dennison has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Avery Dennison’s competitors have a beta of 1.21, suggesting that their average share price is 21% more volatile than the S&P 500.

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 51.7% of their earnings in the form of a dividend. Avery Dennison has increased its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Avery Dennison and its competitors top-line 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 149.42

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.

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