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 $20.2B against $13.3B — 1.5× the size. Amcor PLC trades at the lower P/E: 18.5× against 19.2×. 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 (5.93% vs 2.21%). 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 18.49 19.21 17.11
P/S 0.86 1.45 0.87
P/B 1.72 5.76 1.66
Price to free cash flow 16.25 12.86 13.16
EV/EBITDA 3.70 11.39 9.21
EV/Sales 1.41 1.77 1.35
Earnings yield 5.41% 5.21% 4.96%
Free cash flow yield 6.15% 7.78% 6.15%

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% 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 5.93% 2.21% 3.14%
Payout ratio 1.10 0.43 0.56

Size

Metric AMCR AVY Packaging & Containers median
Market cap 20.22b 13.33b 3.71b

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