Avery Dennison (NYSE: AVY) is one of 14 public companies in the “Non-Paper Containers & Packaging” industry, but how does it compare to its rivals? We will compare Avery Dennison to similar businesses based on the strength of its institutional ownership, risk, earnings, dividends, profitability, valuation and analyst recommendations.

Risk & Volatility

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 rivals have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Avery Dennison and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avery Dennison 0 4 4 0 2.50
Avery Dennison Competitors 95 606 412 6 2.29

Avery Dennison currently has a consensus price target of $109.00, suggesting a potential downside of 10.17%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 4.58%. Given Avery Dennison’s rivals higher probable upside, analysts plainly believe Avery Dennison has less favorable growth aspects than its rivals.

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, endowments and large money managers believe a stock will outperform the market over the long term.

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 61.1% of their earnings in the form of a dividend. Avery Dennison has increased its dividend for 7 consecutive years.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Avery Dennison $6.09 billion $320.70 million 27.08
Avery Dennison Competitors $4.42 billion $182.22 million 37.45

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

Profitability

This table compares Avery Dennison and its rivals’ 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 2.86% 24.02% 4.12%

Summary

Avery Dennison beats its rivals 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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