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 $14.3B against $5.1B — 2.8× the size. Sonoco Products Company has negative trailing earnings, so its P/E is not meaningful; Avery Dennison Corporation trades at 20.5×. Avery Dennison Corporation grew revenue faster over the last twelve months: 6.77% against 3.62%. Avery Dennison Corporation has the higher net margin (7.56% vs −3.08%) and the higher return on invested capital (13.0% vs 1.97%). Both pay a dividend; Sonoco Products Company yields more (4.16% vs 2.05%). Across the 22 metrics below, Avery Dennison Corporation leads on 11 and Sonoco Products Company on 11.

Valuation

Metric AVY SON Packaging & Containers median
P/E 20.53 n/m 20.50
P/S 1.54 0.69 0.84
P/B 6.02 1.81 1.81
Price to free cash flow 14.19 12.58 13.39
EV/EBITDA 11.98 11.94 9.53
EV/Sales 1.85 1.18 1.39
Earnings yield 4.87% (4.47%) 2.89%
Free cash flow yield 7.05% 7.95% 5.42%

Profitability

Metric AVY SON Packaging & Containers median
Gross margin 28.83% 20.22% 20.09%
Operating margin 11.74% 2.74% 6.42%
Net margin 7.56% (3.08%) 3.43%
Free cash flow margin 10.82% 5.52% 4.78%
Return on equity 30.80% (7.41%) 2.28%
Return on assets 7.85% (2.08%) 1.04%
Return on invested capital 12.98% 1.97% 4.57%

Growth

Metric AVY SON Packaging & Containers median
Revenue growth (TTM) 6.77% 3.62% 4.05%
EPS growth (last fiscal year) 0.69% 510.30% 0.69%
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 1.33 1.34 0.79
Current ratio 1.16 1.18 1.29
Net debt to EBITDA 2.19 2.22 2.59

Dividend

Metric AVY SON Packaging & Containers median
Dividend yield 2.05% 4.16% 3.38%
Payout ratio 0.42 0.43 0.60

Size

Metric AVY SON Packaging & Containers median
Market cap 14.32b 5.08b 3.71b

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