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

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

Company Overview

CP’s market capitalization of 75.39 billion USD is significantly greater than AVY’s 14.32 billion USD, highlighting its more substantial market valuation.

With betas of 0.89 for AVY and 1.07 for CP, both stocks show similar sensitivity to overall market movements.

SymbolAVYCP
Company NameAvery Dennison CorporationCanadian Pacific Railway Limited
CountryUSCA
SectorIndustrialsIndustrials
IndustryBusiness Equipment & SuppliesRailroads
CEODeon M. StanderKeith E. Creel
Price183.24 USD81.03 USD
Market Cap14.32 billion USD75.39 billion USD
Beta0.891.07
ExchangeNYSENYSE
IPO DateApril 4, 1977December 30, 1983
ADRNoNo

Historical Performance

This chart compares the performance of AVY and CP 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.

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

Profitability

Return on Equity

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.

CP

8.37%

Railroads Industry

Max
40.80%
Q3
24.36%
Median
18.32%
Q1
11.84%
Min
8.37%

CP’s Return on Equity of 8.37% is in the lower quartile for the Railroads industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

AVY vs. CP: A comparison of their ROE against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Return on Invested Capital

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.

CP

4.91%

Railroads Industry

Max
11.47%
Q3
9.66%
Median
9.08%
Q1
7.36%
Min
4.32%

CP’s Return on Invested Capital of 4.91% is in the lower quartile for the Railroads industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.

AVY vs. CP: A comparison of their ROIC against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Net Profit Margin

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.

CP

26.00%

Railroads Industry

Max
27.77%
Q3
26.50%
Median
24.33%
Q1
9.34%
Min
4.79%

CP’s Net Profit Margin of 26.00% is aligned with the median group of its peers in the Railroads industry. This indicates its ability to convert revenue into profit is typical for the sector.

AVY vs. CP: A comparison of their Net Profit Margin against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Operating Profit Margin

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.

CP

36.27%

Railroads Industry

Max
41.08%
Q3
37.86%
Median
35.40%
Q1
15.99%
Min
10.85%

CP’s Operating Profit Margin of 36.27% is around the midpoint for the Railroads industry, indicating that its efficiency in managing core business operations is typical for the sector.

AVY vs. CP: A comparison of their Operating Margin against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Profitability at a Glance

SymbolAVYCP
Return on Equity (TTM)30.48%8.37%
Return on Assets (TTM)8.36%4.38%
Return on Invested Capital (TTM)13.21%4.91%
Net Profit Margin (TTM)7.98%26.00%
Operating Profit Margin (TTM)12.83%36.27%
Gross Profit Margin (TTM)28.79%41.02%

Financial Strength

Current Ratio

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.

CP

0.81

Railroads Industry

Max
1.97
Q3
1.41
Median
0.85
Q1
0.77
Min
0.62

CP’s Current Ratio of 0.81 aligns with the median group of the Railroads industry, indicating that its short-term liquidity is in line with its sector peers.

AVY vs. CP: A comparison of their Current Ratio against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Debt-to-Equity Ratio

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.

CP

0.47

Railroads Industry

Max
2.11
Q3
1.44
Median
1.19
Q1
0.72
Min
0.39

Falling into the lower quartile for the Railroads industry, CP’s Debt-to-Equity Ratio of 0.47 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AVY vs. CP: A comparison of their D/E Ratio against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Interest Coverage Ratio

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.

CP

6.63

Railroads Industry

Max
8.45
Q3
7.16
Median
6.40
Q1
5.53
Min
4.30

CP’s Interest Coverage Ratio of 6.63 is positioned comfortably within the norm for the Railroads industry, indicating a standard and healthy capacity to cover its interest payments.

AVY vs. CP: A comparison of their Interest Coverage against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Financial Strength at a Glance

SymbolAVYCP
Current Ratio (TTM)1.030.81
Quick Ratio (TTM)0.680.70
Debt-to-Equity Ratio (TTM)1.590.47
Debt-to-Asset Ratio (TTM)0.410.26
Net Debt-to-EBITDA Ratio (TTM)2.322.86
Interest Coverage Ratio (TTM)9.416.63

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

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

Dividend

Dividend Yield

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.

CP

0.73%

Railroads Industry

Max
4.30%
Q3
2.64%
Median
2.21%
Q1
1.33%
Min
0.43%

CP’s Dividend Yield of 0.73% is in the lower quartile for the Railroads industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AVY vs. CP: A comparison of their Dividend Yield against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Dividend Payout Ratio

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.

CP

18.40%

Railroads Industry

Max
69.30%
Q3
47.83%
Median
32.93%
Q1
18.85%
Min
13.29%

CP’s Dividend Payout Ratio of 18.40% is in the lower quartile for the Railroads industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

AVY vs. CP: A comparison of their Payout Ratio against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Dividend at a Glance

SymbolAVYCP
Dividend Yield (TTM)1.95%0.73%
Dividend Payout Ratio (TTM)40.30%18.40%

Valuation

Price-to-Earnings Ratio

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.

CP

26.63

Railroads Industry

Max
26.01
Q3
22.00
Median
19.48
Q1
17.09
Min
16.09

At 26.63, CP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Railroads industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AVY vs. CP: A comparison of their P/E Ratio against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Forward P/E to Growth Ratio

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.

CP

1.90

Railroads Industry

Max
1.85
Q3
1.84
Median
1.79
Q1
1.59
Min
1.52

The Forward PEG Ratio is often not a primary valuation metric in the Railroads industry.

AVY vs. CP: A comparison of their Forward PEG Ratio against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Price-to-Sales Ratio

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.

CP

6.90

Railroads Industry

Max
6.74
Q3
5.30
Median
4.55
Q1
2.73
Min
0.42

With a P/S Ratio of 6.90, CP trades at a valuation that eclipses even the highest in the Railroads industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AVY vs. CP: A comparison of their P/S Ratio against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Price-to-Book Ratio

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.

CP

2.13

Railroads Industry

Max
5.11
Q3
4.36
Median
3.70
Q1
1.98
Min
1.00

CP’s P/B Ratio of 2.13 is within the conventional range for the Railroads industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AVY vs. CP: A comparison of their P/B Ratio against their respective Business Equipment & Supplies and Railroads industry benchmarks.

Valuation at a Glance

SymbolAVYCP
Price-to-Earnings Ratio (P/E, TTM)20.7126.63
Forward PEG Ratio (TTM)2.171.90
Price-to-Sales Ratio (P/S, TTM)1.646.90
Price-to-Book Ratio (P/B, TTM)6.672.13
Price-to-Free Cash Flow Ratio (P/FCF, TTM)24.2243.44
EV-to-EBITDA (TTM)12.4916.19
EV-to-Sales (TTM)2.018.38