Avery Dennison Corporation (AVY) vs International Paper Company (IP)

Avery Dennison Corporation and International Paper Company are both Packaging & Containers companies. International Paper Company is the larger, with a market value of $18.1B against $14.3B — 1.3× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Avery Dennison Corporation trades at 20.5×. International Paper Company grew revenue faster over the last twelve months: 12.2% against 6.77%. Avery Dennison Corporation has the higher net margin (7.56% vs −14.3%) and the higher return on invested capital (13.0% vs 2.15%). Both pay a dividend; International Paper Company yields more (5.39% vs 2.05%). Across the 22 metrics below, Avery Dennison Corporation leads on 13 and International Paper Company on 9.

Valuation

Metric AVY IP Packaging & Containers median
P/E 20.53 n/m 20.50
P/S 1.54 0.75 0.84
P/B 6.02 1.38 1.81
Price to free cash flow 14.19 63.00 13.39
EV/EBITDA 11.98 8.28 9.53
EV/Sales 1.85 1.04 1.39
Earnings yield 4.87% (19.11%) 2.89%
Free cash flow yield 7.05% 1.59% 5.42%

Profitability

Metric AVY IP Packaging & Containers median
Gross margin 28.83% 29.80% 20.09%
Operating margin 11.74% 2.85% 6.42%
Net margin 7.56% (14.32%) 3.43%
Free cash flow margin 10.82% 1.19% 4.78%
Return on equity 30.80% (22.73%) 2.28%
Return on assets 7.85% (9.09%) 1.04%
Return on invested capital 12.98% 2.15% 4.57%

Growth

Metric AVY IP Packaging & Containers median
Revenue growth (TTM) 6.77% 12.19% 4.05%
EPS growth (last fiscal year) 0.69% (542.68%) 0.69%
Revenue growth, 5-year CAGR 4.90% 6.12% 5.66%
Net income growth, 5-year CAGR 4.36% 0.00% 0.00%

Health

Metric AVY IP Packaging & Containers median
Debt to equity 1.33 0.59 0.79
Current ratio 1.16 1.01 1.29
Net debt to EBITDA 2.19 2.50 2.59

Dividend

Metric AVY IP Packaging & Containers median
Dividend yield 2.05% 5.39% 3.38%
Payout ratio 0.42 — 0.60

Size

Metric AVY IP Packaging & Containers median
Market cap 14.32b 18.13b 3.71b

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