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 $18.4B against $12.8B — 1.4× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Avery Dennison Corporation trades at 18.7×. International Paper Company grew revenue faster over the last twelve months: 35.3% against 5.84%. Avery Dennison Corporation has the higher net margin (7.62% vs −14.2%) and the higher return on invested capital (12.9% vs 0.62%). Both pay a dividend; International Paper Company yields more (5.32% vs 1.63%). 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 18.66 n/m 15.79
P/S 1.41 0.87 0.88
P/B 5.60 1.45 1.60
Price to free cash flow 12.49 32.43 13.41
EV/EBITDA 11.12 9.42 9.04
EV/Sales 1.72 1.18 1.31
Earnings yield 5.36% (18.62%) 5.04%
Free cash flow yield 8.01% 3.08% 6.34%

Profitability

Metric AVY IP Packaging & Containers median
Gross margin 28.98% 29.77% 20.03%
Operating margin 11.80% 0.90% 8.36%
Net margin 7.62% (14.20%) 4.53%
Free cash flow margin 11.25% 2.68% 5.14%
Return on equity 31.16% (20.79%) 11.28%
Return on assets 7.93% (8.72%) 4.29%
Return on invested capital 12.93% 0.62% 6.43%

Growth

Metric AVY IP Packaging & Containers median
Revenue growth (TTM) 5.84% 35.30% 9.10%
EPS growth (last fiscal year) 0.69% (542.68%) —
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 1.37 0.57 0.78
Current ratio 1.13 1.10 1.29
Net debt to EBITDA 2.19 2.50 2.65

Dividend

Metric AVY IP Packaging & Containers median
Dividend yield 1.63% 5.32% 2.79%
Payout ratio 0.44 0.46 0.28

Size

Metric AVY IP Packaging & Containers median
Market cap 12.81b 18.44b 3.71b

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