Amcor PLC (AMCR) vs Avery Dennison Corporation (AVY)

Amcor PLC and Avery Dennison Corporation are both Packaging & Containers companies. Amcor PLC is the larger, with a market value of $19.4B against $12.8B — 1.5× the size. Amcor PLC trades at the lower P/E: 17.9× against 18.7×. Amcor PLC grew revenue faster over the last twelve months: 56.6% against 5.84%. Avery Dennison Corporation has the higher net margin (7.62% vs 4.71%) and the lower return on invested capital (12.9% vs 17.9%). Both pay a dividend; Amcor PLC yields more (5.45% vs 1.63%). Across the 23 metrics below, Amcor PLC leads on 13 and Avery Dennison Corporation on 10.

Valuation

Metric AMCR AVY Packaging & Containers median
P/E 17.94 18.66 15.79
P/S 0.84 1.41 0.88
P/B 1.67 5.60 1.60
Price to free cash flow 15.77 12.49 13.41
EV/EBITDA 3.63 11.12 9.04
EV/Sales 1.38 1.72 1.31
Earnings yield 5.58% 5.36% 5.04%
Free cash flow yield 6.34% 8.01% 6.34%

Profitability

Metric AMCR AVY Packaging & Containers median
Gross margin 19.95% 28.98% 20.03%
Operating margin 8.08% 11.80% 8.36%
Net margin 4.71% 7.62% 4.53%
Free cash flow margin 5.31% 11.25% 5.14%
Return on equity 9.40% 31.16% 11.28%
Return on assets 5.97% 7.93% 4.29%
Return on invested capital 17.85% 12.93% 6.43%

Growth

Metric AMCR AVY Packaging & Containers median
Revenue growth (TTM) 56.61% 5.84% 9.10%
EPS growth (last fiscal year) 46.66% 0.69% —
Revenue growth, 5-year CAGR 12.82% 4.90% 5.66%
Net income growth, 5-year CAGR 3.33% 4.36% 0.00%

Health

Metric AMCR AVY Packaging & Containers median
Debt to equity 1.18 1.37 0.78
Current ratio 1.25 1.13 1.29
Net debt to EBITDA 3.73 2.19 2.65

Dividend

Metric AMCR AVY Packaging & Containers median
Dividend yield 5.45% 1.63% 2.79%
Payout ratio 0.69 0.44 0.28

Size

Metric AMCR AVY Packaging & Containers median
Market cap 19.40b 12.81b 3.71b

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