Avery Dennison Corporation (AVY) vs Smurfit Westrock PLC (SW)

Avery Dennison Corporation and Smurfit Westrock PLC are both Packaging & Containers companies. Smurfit Westrock PLC is the larger, with a market value of $24.1B against $12.8B — 1.9× the size. Avery Dennison Corporation trades at the lower P/E: 18.7× against 48.9×. Avery Dennison Corporation grew revenue faster over the last twelve months: 5.84% against 1.69%. Avery Dennison Corporation has the higher net margin (7.62% vs 1.59%) and the higher return on invested capital (12.9% vs 2.93%). Both pay a dividend; Smurfit Westrock PLC yields more (2.64% vs 1.63%). Across the 23 metrics below, Avery Dennison Corporation leads on 14 and Smurfit Westrock PLC on 9.

Valuation

Metric AVY SW Packaging & Containers median
P/E 18.66 48.85 15.79
P/S 1.41 0.78 0.88
P/B 5.60 1.35 1.60
Price to free cash flow 12.49 23.25 13.41
EV/EBITDA 11.12 8.97 9.04
EV/Sales 1.72 1.21 1.31
Earnings yield 5.36% 2.05% 5.04%
Free cash flow yield 8.01% 4.30% 6.34%

Profitability

Metric AVY SW Packaging & Containers median
Gross margin 28.98% 17.93% 20.03%
Operating margin 11.80% 4.71% 8.36%
Net margin 7.62% 1.59% 4.53%
Free cash flow margin 11.25% 3.34% 5.14%
Return on equity 31.16% 2.73% 11.28%
Return on assets 7.93% 1.09% 4.29%
Return on invested capital 12.93% 2.93% 6.43%

Growth

Metric AVY SW Packaging & Containers median
Revenue growth (TTM) 5.84% 1.69% 9.10%
EPS growth (last fiscal year) 0.69% 62.20% —
Revenue growth, 5-year CAGR 4.90% 7.96% 5.66%
Net income growth, 5-year CAGR 4.36% (5.84%) 0.00%

Health

Metric AVY SW Packaging & Containers median
Debt to equity 1.37 0.78 0.78
Current ratio 1.13 1.45 1.29
Net debt to EBITDA 2.19 3.02 2.65

Dividend

Metric AVY SW Packaging & Containers median
Dividend yield 1.63% 2.64% 2.79%
Payout ratio 0.44 0.28 0.28

Size

Metric AVY SW Packaging & Containers median
Market cap 12.81b 24.05b 3.71b

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