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 $21.2B against $14.3B — 1.5× the size. Amcor PLC trades at the lower P/E: 19.2× against 20.2×. Amcor PLC grew revenue faster over the last twelve months: 37.3% against 6.77%. Avery Dennison Corporation has the higher net margin (7.56% vs 4.55%) and the lower return on invested capital (13.0% vs 17.2%). Both pay a dividend; Amcor PLC yields more (5.78% vs 2.08%). 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 19.19 20.18 19.19
P/S 0.87 1.51 0.82
P/B 1.76 5.92 1.76
Price to free cash flow 23.64 13.95 12.39
EV/EBITDA 3.87 11.80 8.92
EV/Sales 1.45 1.82 1.33
Earnings yield 5.21% 4.96% 2.91%
Free cash flow yield 4.23% 7.17% 6.15%

Profitability

Metric AMCR AVY Packaging & Containers median
Gross margin 19.78% 28.83% 20.00%
Operating margin 7.92% 11.74% 6.42%
Net margin 4.55% 7.56% 3.43%
Free cash flow margin 0.00% 10.82% 4.78%
Return on equity 0.00% 30.80% 0.00%
Return on assets 2.94% 7.85% 1.04%
Return on invested capital 17.18% 12.98% 4.57%

Growth

Metric AMCR AVY Packaging & Containers median
Revenue growth (TTM) 37.29% 6.77% 4.05%
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 1.24 1.33 0.79
Current ratio 2.40 1.16 1.33
Net debt to EBITDA 3.73 2.19 2.59

Dividend

Metric AMCR AVY Packaging & Containers median
Dividend yield 5.78% 2.08% 3.54%
Payout ratio 1.12 0.42 0.60

Size

Metric AMCR AVY Packaging & Containers median
Market cap 21.19b 14.32b 3.71b

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