Avery Dennison Corporation (AVY) vs Reynolds Consumer Products Inc. (REYN)

Avery Dennison Corporation and Reynolds Consumer Products Inc. are both Packaging & Containers companies. Avery Dennison Corporation is the larger, with a market value of $12.8B against $4.6B — 2.8× the size. Reynolds Consumer Products Inc. trades at the lower P/E: 13.2× against 18.7×. Avery Dennison Corporation grew revenue faster over the last twelve months: 5.84% against 2.66%. Reynolds Consumer Products Inc. has the higher net margin (9.11% vs 7.62%) and the lower return on invested capital (8.84% vs 12.9%). Both pay a dividend; Reynolds Consumer Products Inc. yields more (3.21% vs 1.63%). Across the 23 metrics below, Avery Dennison Corporation leads on 12 and Reynolds Consumer Products Inc. on 11.

Valuation

Metric AVY REYN Packaging & Containers median
P/E 18.66 13.21 15.79
P/S 1.41 1.21 0.88
P/B 5.60 1.98 1.60
Price to free cash flow 12.49 14.26 13.41
EV/EBITDA 11.12 9.04 9.04
EV/Sales 1.72 1.60 1.31
Earnings yield 5.36% 7.57% 5.04%
Free cash flow yield 8.01% 7.01% 6.34%

Profitability

Metric AVY REYN Packaging & Containers median
Gross margin 28.98% 25.12% 20.03%
Operating margin 11.80% 14.10% 8.36%
Net margin 7.62% 9.11% 4.53%
Free cash flow margin 11.25% 8.45% 5.14%
Return on equity 31.16% 15.48% 11.28%
Return on assets 7.93% 6.94% 4.29%
Return on invested capital 12.93% 8.84% 6.43%

Growth

Metric AVY REYN Packaging & Containers median
Revenue growth (TTM) 5.84% 2.66% 9.10%
EPS growth (last fiscal year) 0.69% (14.37%) —
Revenue growth, 5-year CAGR 4.90% 2.66% 5.66%
Net income growth, 5-year CAGR 4.36% (3.68%) 0.00%

Health

Metric AVY REYN Packaging & Containers median
Debt to equity 1.37 0.66 0.78
Current ratio 1.13 1.80 1.29
Net debt to EBITDA 2.19 2.32 2.65

Dividend

Metric AVY REYN Packaging & Containers median
Dividend yield 1.63% 3.21% 2.79%
Payout ratio 0.44 0.81 0.28

Size

Metric AVY REYN Packaging & Containers median
Market cap 12.81b 4.55b 3.71b

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