Avery Dennison Corporation (AVY) vs Sonoco Products Company (SON)

Avery Dennison Corporation and Sonoco Products Company are both Packaging & Containers companies. Avery Dennison Corporation is the larger, with a market value of $12.8B against $4.9B — 2.6× the size. Sonoco Products Company trades at the lower P/E: 8.0× against 18.7×. Sonoco Products Company grew revenue faster over the last twelve months: 17.7% against 5.84%. Sonoco Products Company has the higher net margin (8.41% vs 7.62%) and the lower return on invested capital (9.36% vs 12.9%). Both pay a dividend; Sonoco Products Company yields more (3.56% vs 1.63%). Across the 23 metrics below, Sonoco Products Company leads on 16 and Avery Dennison Corporation on 7.

Valuation

Metric AVY SON Packaging & Containers median
P/E 18.66 7.96 15.79
P/S 1.41 0.67 0.88
P/B 5.60 1.38 1.60
Price to free cash flow 12.49 12.37 13.41
EV/EBITDA 11.12 5.32 9.04
EV/Sales 1.72 1.11 1.31
Earnings yield 5.36% 12.56% 5.04%
Free cash flow yield 8.01% 8.08% 6.34%

Profitability

Metric AVY SON Packaging & Containers median
Gross margin 28.98% 20.81% 20.03%
Operating margin 11.80% 13.87% 8.36%
Net margin 7.62% 8.41% 4.53%
Free cash flow margin 11.25% 5.40% 5.14%
Return on equity 31.16% 18.33% 11.28%
Return on assets 7.93% 5.47% 4.29%
Return on invested capital 12.93% 9.36% 6.43%

Growth

Metric AVY SON Packaging & Containers median
Revenue growth (TTM) 5.84% 17.73% 9.10%
EPS growth (last fiscal year) 0.69% 510.30% —
Revenue growth, 5-year CAGR 4.90% 7.50% 5.66%
Net income growth, 5-year CAGR 4.36% 37.05% 0.00%

Health

Metric AVY SON Packaging & Containers median
Debt to equity 1.37 0.97 0.78
Current ratio 1.13 0.99 1.29
Net debt to EBITDA 2.19 2.22 2.65

Dividend

Metric AVY SON Packaging & Containers median
Dividend yield 1.63% 3.56% 2.79%
Payout ratio 0.44 0.41 0.28

Size

Metric AVY SON Packaging & Containers median
Market cap 12.81b 4.94b 3.71b

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