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ALLE vs. AVY: A Head-to-Head Stock Comparison

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Here’s a clear look at ALLE and AVY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ALLE’s market capitalization stands at 12.74 billion USD, while AVY’s is 14.32 billion USD, indicating their market valuations are broadly comparable.

With betas of 1.03 for ALLE and 0.89 for AVY, both stocks show similar sensitivity to overall market movements.

SymbolALLEAVY
Company NameAllegion plcAvery Dennison Corporation
CountryIEUS
SectorIndustrialsIndustrials
IndustrySecurity & Protection ServicesBusiness Equipment & Supplies
CEOJohn H. StoneDeon M. Stander
Price148.11 USD183.24 USD
Market Cap12.74 billion USD14.32 billion USD
Beta1.030.89
ExchangeNYSENYSE
IPO DateNovember 18, 2013April 4, 1977
ADRNoNo

Historical Performance

This chart compares the performance of ALLE and AVY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ALLE vs. AVY: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ALLE

40.75%

Security & Protection Services Industry

Max
59.45%
Q3
25.79%
Median
15.13%
Q1
2.33%
Min
-21.67%

In the upper quartile for the Security & Protection Services industry, ALLE’s Return on Equity of 40.75% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AVY

30.48%

Business Equipment & Supplies Industry

Max
16.56%
Q3
16.56%
Median
12.99%
Q1
11.92%
Min
11.92%

AVY’s Return on Equity of 30.48% is exceptionally high, placing it well beyond the typical range for the Business Equipment & Supplies industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ALLE vs. AVY: A comparison of their ROE against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Return on Invested Capital

ALLE

17.73%

Security & Protection Services Industry

Max
25.01%
Q3
14.14%
Median
7.10%
Q1
-2.34%
Min
-21.32%

In the upper quartile for the Security & Protection Services industry, ALLE’s Return on Invested Capital of 17.73% signifies a highly effective use of its capital to generate profits when compared to its peers.

AVY

13.21%

Business Equipment & Supplies Industry

Max
13.21%
Q3
11.67%
Median
10.45%
Q1
8.54%
Min
6.64%

In the upper quartile for the Business Equipment & Supplies industry, AVY’s Return on Invested Capital of 13.21% signifies a highly effective use of its capital to generate profits when compared to its peers.

ALLE vs. AVY: A comparison of their ROIC against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Net Profit Margin

ALLE

16.28%

Security & Protection Services Industry

Max
25.00%
Q3
15.90%
Median
11.58%
Q1
1.17%
Min
-4.29%

A Net Profit Margin of 16.28% places ALLE in the upper quartile for the Security & Protection Services industry, signifying strong profitability and more effective cost management than most of its peers.

AVY

7.98%

Business Equipment & Supplies Industry

Max
13.49%
Q3
7.98%
Median
5.35%
Q1
3.84%
Min
3.84%

AVY’s Net Profit Margin of 7.98% is aligned with the median group of its peers in the Business Equipment & Supplies industry. This indicates its ability to convert revenue into profit is typical for the sector.

ALLE vs. AVY: A comparison of their Net Profit Margin against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Operating Profit Margin

ALLE

21.07%

Security & Protection Services Industry

Max
27.64%
Q3
22.23%
Median
14.81%
Q1
8.71%
Min
-4.91%

ALLE’s Operating Profit Margin of 21.07% is around the midpoint for the Security & Protection Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

AVY

12.83%

Business Equipment & Supplies Industry

Max
17.67%
Q3
12.83%
Median
8.01%
Q1
7.07%
Min
5.16%

AVY’s Operating Profit Margin of 12.83% is around the midpoint for the Business Equipment & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.

ALLE vs. AVY: A comparison of their Operating Margin against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Profitability at a Glance

SymbolALLEAVY
Return on Equity (TTM)40.75%30.48%
Return on Assets (TTM)13.63%8.36%
Return on Invested Capital (TTM)17.73%13.21%
Net Profit Margin (TTM)16.28%7.98%
Operating Profit Margin (TTM)21.07%12.83%
Gross Profit Margin (TTM)44.49%28.79%

Financial Strength

Current Ratio

ALLE

2.17

Security & Protection Services Industry

Max
2.94
Q3
2.55
Median
1.87
Q1
1.36
Min
0.77

ALLE’s Current Ratio of 2.17 aligns with the median group of the Security & Protection Services industry, indicating that its short-term liquidity is in line with its sector peers.

AVY

1.03

Business Equipment & Supplies Industry

Max
1.76
Q3
1.76
Median
1.65
Q1
1.19
Min
1.03

AVY’s Current Ratio of 1.03 falls into the lower quartile for the Business Equipment & Supplies industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ALLE vs. AVY: A comparison of their Current Ratio against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Debt-to-Equity Ratio

ALLE

1.24

Security & Protection Services Industry

Max
2.16
Q3
1.30
Median
0.53
Q1
0.15
Min
0.03

ALLE’s Debt-to-Equity Ratio of 1.24 is typical for the Security & Protection Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AVY

1.59

Business Equipment & Supplies Industry

Max
0.69
Q3
0.69
Median
0.61
Q1
0.21
Min
0.01

With a Debt-to-Equity Ratio of 1.59, AVY operates with exceptionally high leverage compared to the Business Equipment & Supplies industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

ALLE vs. AVY: A comparison of their D/E Ratio against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Interest Coverage Ratio

ALLE

7.76

Security & Protection Services Industry

Max
11.76
Q3
10.76
Median
4.76
Q1
1.85
Min
1.60

ALLE’s Interest Coverage Ratio of 7.76 is positioned comfortably within the norm for the Security & Protection Services industry, indicating a standard and healthy capacity to cover its interest payments.

AVY

9.41

Business Equipment & Supplies Industry

Max
12.58
Q3
10.20
Median
8.76
Q1
6.65
Min
2.29

AVY’s Interest Coverage Ratio of 9.41 is positioned comfortably within the norm for the Business Equipment & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.

ALLE vs. AVY: A comparison of their Interest Coverage against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Financial Strength at a Glance

SymbolALLEAVY
Current Ratio (TTM)2.171.03
Quick Ratio (TTM)1.510.68
Debt-to-Equity Ratio (TTM)1.241.59
Debt-to-Asset Ratio (TTM)0.440.41
Net Debt-to-EBITDA Ratio (TTM)1.592.32
Interest Coverage Ratio (TTM)7.769.41

Growth

The following charts compare key year-over-year (YoY) growth metrics for ALLE and AVY. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ALLE vs. AVY: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ALLE vs. AVY: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ALLE vs. AVY: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ALLE

1.34%

Security & Protection Services Industry

Max
11.81%
Q3
1.96%
Median
1.30%
Q1
0.00%
Min
0.00%

ALLE’s Dividend Yield of 1.34% is consistent with its peers in the Security & Protection Services industry, providing a dividend return that is standard for its sector.

AVY

1.95%

Business Equipment & Supplies Industry

Max
19.11%
Q3
8.38%
Median
3.82%
Q1
2.68%
Min
2.04%

AVY’s Dividend Yield of 1.95% is below the typical range for the Business Equipment & Supplies industry. This indicates that shareholder returns are likely driven more by potential capital appreciation than by dividend income.

ALLE vs. AVY: A comparison of their Dividend Yield against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Dividend Payout Ratio

ALLE

27.04%

Security & Protection Services Industry

Max
219.43%
Q3
30.32%
Median
26.81%
Q1
14.53%
Min
0.00%

ALLE’s Dividend Payout Ratio of 27.04% is within the typical range for the Security & Protection Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AVY

40.30%

Business Equipment & Supplies Industry

Max
233.86%
Q3
93.40%
Median
43.44%
Q1
39.85%
Min
38.49%

AVY’s Dividend Payout Ratio of 40.30% is within the typical range for the Business Equipment & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ALLE vs. AVY: A comparison of their Payout Ratio against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Dividend at a Glance

SymbolALLEAVY
Dividend Yield (TTM)1.34%1.95%
Dividend Payout Ratio (TTM)27.04%40.30%

Valuation

Price-to-Earnings Ratio

ALLE

20.55

Security & Protection Services Industry

Max
23.62
Q3
23.52
Median
21.47
Q1
17.28
Min
13.23

ALLE’s P/E Ratio of 20.55 is within the middle range for the Security & Protection Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AVY

20.71

Business Equipment & Supplies Industry

Max
19.85
Q3
17.85
Median
14.65
Q1
11.60
Min
10.05

At 20.71, AVY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Business Equipment & Supplies industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ALLE vs. AVY: A comparison of their P/E Ratio against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Forward P/E to Growth Ratio

ALLE

2.13

Security & Protection Services Industry

Max
2.27
Q3
2.08
Median
2.07
Q1
0.75
Min
0.22

A Forward PEG Ratio of 2.13 places ALLE in the upper quartile for the Security & Protection Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

AVY

2.17

Business Equipment & Supplies Industry

Max
2.08
Q3
1.58
Median
1.08
Q1
0.82
Min
0.55

AVY’s Forward PEG Ratio of 2.17 is exceptionally high for the Business Equipment & Supplies industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

ALLE vs. AVY: A comparison of their Forward PEG Ratio against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Price-to-Sales Ratio

ALLE

3.34

Security & Protection Services Industry

Max
5.83
Q3
3.54
Median
2.24
Q1
1.37
Min
0.47

ALLE’s P/S Ratio of 3.34 aligns with the market consensus for the Security & Protection Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AVY

1.64

Business Equipment & Supplies Industry

Max
1.62
Q3
1.57
Median
0.91
Q1
0.37
Min
0.20

With a P/S Ratio of 1.64, AVY trades at a valuation that eclipses even the highest in the Business Equipment & Supplies industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ALLE vs. AVY: A comparison of their P/S Ratio against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Price-to-Book Ratio

ALLE

7.95

Security & Protection Services Industry

Max
11.67
Q3
7.86
Median
4.17
Q1
2.20
Min
0.79

ALLE’s P/B Ratio of 7.95 is in the upper tier for the Security & Protection Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AVY

6.67

Business Equipment & Supplies Industry

Max
2.90
Q3
2.90
Median
1.32
Q1
1.26
Min
0.55

At 6.67, AVY’s P/B Ratio is at an extreme premium to the Business Equipment & Supplies industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ALLE vs. AVY: A comparison of their P/B Ratio against their respective Security & Protection Services and Business Equipment & Supplies industry benchmarks.

Valuation at a Glance

SymbolALLEAVY
Price-to-Earnings Ratio (P/E, TTM)20.5520.71
Forward PEG Ratio (TTM)2.132.17
Price-to-Sales Ratio (P/S, TTM)3.341.64
Price-to-Book Ratio (P/B, TTM)7.956.67
Price-to-Free Cash Flow Ratio (P/FCF, TTM)19.8624.22
EV-to-EBITDA (TTM)15.0712.49
EV-to-Sales (TTM)3.732.01