Financial Review: Crown Holdings (CCK) versus Avery Dennison Corporation (AVY)
Crown Holdings (NYSE: CCK) and Avery Dennison Corporation (NYSE:AVY) are both mid-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
This is a summary of recent recommendations and price targets for Crown Holdings and Avery Dennison Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avery Dennison Corporation||0||2||5||0||2.71|
Crown Holdings currently has a consensus price target of $64.25, indicating a potential upside of 8.42%. Avery Dennison Corporation has a consensus price target of $92.17, indicating a potential downside of 2.99%. Given Crown Holdings’ higher possible upside, analysts clearly believe Crown Holdings is more favorable than Avery Dennison Corporation.
Insider and Institutional Ownership
90.2% of Crown Holdings shares are owned by institutional investors. Comparatively, 87.8% of Avery Dennison Corporation shares are owned by institutional investors. 1.8% of Crown Holdings shares are owned by company insiders. Comparatively, 1.4% of Avery Dennison Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Crown Holdings and Avery Dennison Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Crown Holdings||$8.31 billion||0.96||$1.32 billion||$3.49||16.98|
|Avery Dennison Corporation||$6.26 billion||1.34||$792.50 million||$4.26||22.30|
Crown Holdings has higher revenue and earnings than Avery Dennison Corporation. Crown Holdings 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.
Avery Dennison Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 1.9%. Crown Holdings does not pay a dividend. Avery Dennison Corporation pays out 42.3% of its earnings in the form of a dividend. Crown Holdings has raised its dividend for 6 consecutive years.
Volatility & Risk
Crown Holdings has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Avery Dennison Corporation has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
This table compares Crown Holdings and Avery Dennison Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avery Dennison Corporation||6.14%||39.29%||8.44%|
Crown Holdings beats Avery Dennison Corporation on 9 of the 16 factors compared between the two stocks.
Crown Holdings Company Profile
Crown Holdings, Inc. is engaged in the design, manufacture and sale of packaging products for consumer goods. The Company’s business is organized within three divisions: Americas, Europe and Asia Pacific. Within each division, the Company is organized along product lines. The Company’s segments within the Americas Division are Americas Beverage and North America Food. The Company’s segments within the European Division are European Beverage and European Food. The Company’s Asia Pacific Division segment consists of its beverage and non-beverage can operations. The Company is also engaged in European aerosol and specialty packaging business, its North American aerosol can business, and its tooling and equipment operations in the Unites States and the United Kingdom. As of December 31, 2016, the Company operated 146 plants along with sales and service facilities throughout 36 countries. It also has three canmaking and spare part operations in the United States and the United Kingdom.
Avery Dennison Corporation 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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