Avery Dennison (NYSE:AVY) & Brambles (OTCMKTS:BXBLY) Critical Contrast

Brambles (OTCMKTS:BXBLY) and Avery Dennison (NYSE:AVY) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Insider & Institutional Ownership

0.0% of Brambles shares are owned by institutional investors. Comparatively, 94.2% of Avery Dennison shares are owned by institutional investors. 0.8% of Avery Dennison shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Brambles and Avery Dennison”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brambles	$6.55 billion	3.21	$779.90 million	N/A	N/A
Avery Dennison	$8.76 billion	1.50	$704.90 million	$8.91	18.91

Brambles has higher earnings, but lower revenue than Avery Dennison.

Risk and Volatility

Brambles has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Avery Dennison has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Brambles and Avery Dennison, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brambles	0	0	0	0	0.00
Avery Dennison	0	5	6	0	2.55

Avery Dennison has a consensus target price of $197.60, indicating a potential upside of 17.28%. Given Avery Dennison’s stronger consensus rating and higher possible upside, analysts clearly believe Avery Dennison is more favorable than Brambles.

Profitability

This table compares Brambles and Avery Dennison’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brambles	N/A	N/A	N/A
Avery Dennison	8.14%	33.14%	8.91%

Dividends

Brambles pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Avery Dennison pays an annual dividend of $3.76 per share and has a dividend yield of 2.2%. Avery Dennison pays out 42.2% of its earnings in the form of a dividend. Avery Dennison has raised its dividend for 15 consecutive years.

Summary

Avery Dennison beats Brambles on 10 of the 15 factors compared between the two stocks.

About Brambles

Brambles Limited operates as a supply-chain logistics company. It operates through CHEP North America and Latin America; CHEP Europe, Middle East, Africa and India; and CHEP Australia, New Zealand and Asia, excluding India segments. The company engages in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates, and containers. It serves customers in the fast-moving consumer goods, fresh produce, beverage, retail, and general manufacturing industries. Brambles Limited was founded in 1875 and is based in Sydney, Australia.

About Avery Dennison

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally. It provides pressure-sensitive materials comprising papers, plastic films, metal foils, and fabrics; performance tapes products, including tapes for wire harnessing, as well as cable wrapping for automotive, electrical, and general industrial applications; mechanical fasteners, which are precision-extruded and injection-molded plastic devices used in various automotive, general industrial, and retail applications; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, Yongle, and Avery Dennison brands. The company also offers graphics and reflective products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation market segments; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials designed for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it provides branding solutions include brand embellishments, graphic tickets, tags, and labels, and sustainable packaging; and information solutions include item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media solutions, and brand protection and security solutions, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Mentor, Ohio.