Avery Dennison Corporation (NYSE: AVY) and TriMas Corporation (NASDAQ:TRS) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Earnings & Valuation
This table compares Avery Dennison Corporation and TriMas Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Avery Dennison Corporation||$6.09 billion||1.57||$320.70 million||$4.48||24.17|
|TriMas Corporation||$794.02 million||1.45||-$39.80 million||($0.72)||-35.07|
Avery Dennison Corporation has higher revenue and earnings than TriMas Corporation. TriMas Corporation is trading at a lower price-to-earnings ratio than Avery Dennison Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
86.8% of Avery Dennison Corporation shares are owned by institutional investors. Comparatively, 99.2% of TriMas Corporation shares are owned by institutional investors. 1.4% of Avery Dennison Corporation shares are owned by insiders. Comparatively, 1.4% of TriMas Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings for Avery Dennison Corporation and TriMas Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avery Dennison Corporation||0||4||4||0||2.50|
Avery Dennison Corporation presently has a consensus target price of $103.33, suggesting a potential downside of 4.58%. TriMas Corporation has a consensus target price of $25.25, suggesting a potential upside of 0.00%. Given TriMas Corporation’s higher probable upside, analysts plainly believe TriMas Corporation is more favorable than Avery Dennison Corporation.
Avery Dennison Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 1.7%. TriMas Corporation does not pay a dividend. Avery Dennison Corporation pays out 40.2% of its earnings in the form of a dividend. Avery Dennison Corporation has raised its dividend for 6 consecutive years.
This table compares Avery Dennison Corporation and TriMas Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avery Dennison Corporation||6.27%||40.52%||8.60%|
Risk and Volatility
Avery Dennison Corporation has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, TriMas Corporation has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.
Avery Dennison Corporation beats TriMas Corporation on 12 of the 16 factors compared between the two stocks.
About Avery Dennison Corporation
Avery Dennison Corporation (Avery Dennison) is engaged in the production of pressure-sensitive materials and a range of tickets, tags, labels and other converted products. The Company’s segments include Label and Graphic Materials (LGM); Retail Branding and Information Solutions (RBIS), and Industrial and Healthcare Materials (IHM). The Company’s LGM segment manufactures and sells Fasson-, JAC-, and Avery Dennison-brand pressure-sensitive label and packaging materials, Avery Dennison- and Mactac-brand graphics, and Avery Dennison-brand reflective products. The Company’s RBIS segment designs, manufactures and sells a range of branding and information solutions to retailers, brand owners, apparel manufacturers, distributors and industrial customers on a global basis. The Company’s IHM segment manufactures and sells Fasson-brand and Avery Dennison-brand tapes and fasteners, Vancive-brand medical pressure-sensitive adhesive (PSA) based materials and products, and performance polymers.
About TriMas Corporation
TriMas Corporation is a designer, manufacturer and distributor of engineered products for commercial, industrial and consumer markets. The Company operates through four segments: Packaging, Aerospace, Energy and Engineered Components. The Packaging segment is a designer, manufacturer and distributor of engineered closure and dispensing systems for a range of end markets, including steel and plastic industrial, and consumer packaging applications. The Aerospace segment is a designer and manufacturer of a range of products for use in the aerospace industry. The Energy segment is a manufacturer and distributor of metallic and non-metallic gaskets, bolts, industrial fasteners and specialty products for the petroleum refining, petrochemical, oil field and industrial markets. The Engineered Components segment is a designer, manufacturer and distributor of high-pressure and acetylene cylinders for the transportation, storage and dispensing of compressed gases.
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