Avery Dennison Corporation (AVY) vs Packaging Corporation of America (PKG)

Avery Dennison Corporation and Packaging Corporation of America are both Packaging & Containers companies. Packaging Corporation of America is the larger, with a market value of $21.2B against $12.8B — 1.7× the size. Avery Dennison Corporation trades at the lower P/E: 18.7× against 30.7×. Packaging Corporation of America grew revenue faster over the last twelve months: 10.4% against 5.84%. Avery Dennison Corporation has the higher net margin (7.62% vs 7.21%) and the higher return on invested capital (12.9% vs 8.05%). Both pay a dividend; Packaging Corporation of America yields more (3.01% vs 1.63%). Across the 23 metrics below, Avery Dennison Corporation leads on 15 and Packaging Corporation of America on 8.

Valuation

Metric AVY PKG Packaging & Containers median
P/E 18.66 30.68 15.79
P/S 1.41 2.20 0.88
P/B 5.60 4.50 1.60
Price to free cash flow 12.49 28.21 13.41
EV/EBITDA 11.12 13.63 9.04
EV/Sales 1.72 2.60 1.31
Earnings yield 5.36% 3.26% 5.04%
Free cash flow yield 8.01% 3.54% 6.34%

Profitability

Metric AVY PKG Packaging & Containers median
Gross margin 28.98% 20.11% 20.03%
Operating margin 11.80% 10.86% 8.36%
Net margin 7.62% 7.21% 4.53%
Free cash flow margin 11.25% 7.80% 5.14%
Return on equity 31.16% 14.79% 11.28%
Return on assets 7.93% 6.85% 4.29%
Return on invested capital 12.93% 8.05% 6.43%

Growth

Metric AVY PKG Packaging & Containers median
Revenue growth (TTM) 5.84% 10.35% 9.10%
EPS growth (last fiscal year) 0.69% (3.92%) —
Revenue growth, 5-year CAGR 4.90% 6.19% 5.66%
Net income growth, 5-year CAGR 4.36% 10.95% 0.00%

Health

Metric AVY PKG Packaging & Containers median
Debt to equity 1.37 0.85 0.78
Current ratio 1.13 2.94 1.29
Net debt to EBITDA 2.19 1.91 2.65

Dividend

Metric AVY PKG Packaging & Containers median
Dividend yield 1.63% 3.01% 2.79%
Payout ratio 0.44 0.53 0.28

Size

Metric AVY PKG Packaging & Containers median
Market cap 12.81b 21.22b 3.71b

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