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 $22.2B against $14.3B — 1.5× the size. Avery Dennison Corporation trades at the lower P/E: 20.5× against 30.4×. Packaging Corporation of America grew revenue faster over the last twelve months: 12.0% against 6.77%. Avery Dennison Corporation has the higher net margin (7.56% vs 7.37%) and the higher return on invested capital (13.0% vs 0.00%). Both pay a dividend; Packaging Corporation of America yields more (2.22% vs 2.05%). 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 20.53 30.43 20.50
P/S 1.54 2.25 0.84
P/B 6.02 4.75 1.81
Price to free cash flow 14.19 29.74 13.39
EV/EBITDA 11.98 14.26 9.53
EV/Sales 1.85 2.64 1.39
Earnings yield 4.87% 3.29% 2.89%
Free cash flow yield 7.05% 3.36% 5.42%

Profitability

Metric AVY PKG Packaging & Containers median
Gross margin 28.83% 20.53% 20.09%
Operating margin 11.74% 11.16% 6.42%
Net margin 7.56% 7.37% 3.43%
Free cash flow margin 10.82% 0.00% 4.78%
Return on equity 30.80% 0.00% 2.28%
Return on assets 7.85% 0.00% 1.04%
Return on invested capital 12.98% 0.00% 4.57%

Growth

Metric AVY PKG Packaging & Containers median
Revenue growth (TTM) 6.77% 11.98% 4.05%
EPS growth (last fiscal year) 0.69% (3.92%) 0.69%
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 1.33 0.85 0.79
Current ratio 1.16 2.94 1.29
Net debt to EBITDA 2.19 1.91 2.59

Dividend

Metric AVY PKG Packaging & Containers median
Dividend yield 2.05% 2.22% 3.38%
Payout ratio 0.42 0.68 0.60

Size

Metric AVY PKG Packaging & Containers median
Market cap 14.32b 22.17b 3.71b

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