AVY vs. LII: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVY and LII, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AVY’s market capitalization stands at 14.32 billion USD, while LII’s is 21.44 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.89 for AVY and 1.15 for LII, both stocks show similar sensitivity to overall market movements.
| Symbol | AVY | LII |
|---|---|---|
| Company Name | Avery Dennison Corporation | Lennox International Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Business Equipment & Supplies | Construction |
| CEO | Deon M. Stander | Alok Maskara |
| Price | 183.24 USD | 604.22 USD |
| Market Cap | 14.32 billion USD | 21.44 billion USD |
| Beta | 0.89 | 1.15 |
| Exchange | NYSE | NYSE |
| IPO Date | April 4, 1977 | July 29, 1999 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVY and LII 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.
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.
LII
105.85%
Construction Industry
- Max
- 40.76%
- Q3
- 26.03%
- Median
- 16.38%
- Q1
- 5.66%
- Min
- -4.01%
LII’s Return on Equity of 105.85% is exceptionally high, placing it well beyond the typical range for the Construction industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
LII
32.58%
Construction Industry
- Max
- 27.38%
- Q3
- 15.45%
- Median
- 9.91%
- Q1
- 5.86%
- Min
- 2.28%
LII’s Return on Invested Capital of 32.58% is exceptionally high, placing it well beyond the typical range for the Construction industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
LII
14.96%
Construction Industry
- Max
- 24.94%
- Q3
- 14.61%
- Median
- 10.07%
- Q1
- 2.23%
- Min
- -9.49%
A Net Profit Margin of 14.96% places LII in the upper quartile for the Construction industry, signifying strong profitability and more effective cost management than most of its peers.
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.
LII
19.07%
Construction Industry
- Max
- 24.04%
- Q3
- 19.17%
- Median
- 13.63%
- Q1
- 7.69%
- Min
- -7.88%
LII’s Operating Profit Margin of 19.07% is around the midpoint for the Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AVY | LII |
|---|---|---|
| Return on Equity (TTM) | 30.48% | 105.85% |
| Return on Assets (TTM) | 8.36% | 23.24% |
| Return on Invested Capital (TTM) | 13.21% | 32.58% |
| Net Profit Margin (TTM) | 7.98% | 14.96% |
| Operating Profit Margin (TTM) | 12.83% | 19.07% |
| Gross Profit Margin (TTM) | 28.79% | 32.80% |
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.
LII
1.43
Construction Industry
- Max
- 4.22
- Q3
- 2.59
- Median
- 1.84
- Q1
- 1.44
- Min
- 0.96
LII’s Current Ratio of 1.43 falls into the lower quartile for the Construction industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
LII
1.75
Construction Industry
- Max
- 1.75
- Q3
- 1.15
- Median
- 0.84
- Q1
- 0.56
- Min
- 0.05
LII’s leverage is in the upper quartile of the Construction industry, with a Debt-to-Equity Ratio of 1.75. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
LII
30.91
Construction Industry
- Max
- 30.91
- Q3
- 15.60
- Median
- 7.16
- Q1
- 2.73
- Min
- -4.26
LII’s Interest Coverage Ratio of 30.91 is in the upper quartile for the Construction industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AVY | LII |
|---|---|---|
| Current Ratio (TTM) | 1.03 | 1.43 |
| Quick Ratio (TTM) | 0.68 | 0.74 |
| Debt-to-Equity Ratio (TTM) | 1.59 | 1.75 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.43 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.32 | 1.19 |
| Interest Coverage Ratio (TTM) | 9.41 | 30.91 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVY and LII. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
LII
0.79%
Construction Industry
- Max
- 2.43%
- Q3
- 1.20%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
LII’s Dividend Yield of 0.79% is consistent with its peers in the Construction industry, providing a dividend return that is standard for its sector.
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.
LII
20.19%
Construction Industry
- Max
- 84.31%
- Q3
- 28.17%
- Median
- 11.69%
- Q1
- 0.00%
- Min
- 0.00%
LII’s Dividend Payout Ratio of 20.19% is within the typical range for the Construction industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVY | LII |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 0.79% |
| Dividend Payout Ratio (TTM) | 40.30% | 20.19% |
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.
LII
26.72
Construction Industry
- Max
- 52.50
- Q3
- 32.30
- Median
- 22.66
- Q1
- 14.68
- Min
- 9.62
LII’s P/E Ratio of 26.72 is within the middle range for the Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
LII
2.69
Construction Industry
- Max
- 4.11
- Q3
- 2.42
- Median
- 1.60
- Q1
- 1.15
- Min
- 0.27
The Forward PEG Ratio is often not a primary valuation metric in the Construction industry.
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.
LII
4.00
Construction Industry
- Max
- 5.26
- Q3
- 3.38
- Median
- 1.63
- Q1
- 0.99
- Min
- 0.09
LII’s P/S Ratio of 4.00 is in the upper echelon for the Construction industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
LII
25.16
Construction Industry
- Max
- 12.88
- Q3
- 6.91
- Median
- 3.04
- Q1
- 1.93
- Min
- 0.71
At 25.16, LII’s P/B Ratio is at an extreme premium to the Construction 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.
Valuation at a Glance
| Symbol | AVY | LII |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.71 | 26.72 |
| Forward PEG Ratio (TTM) | 2.17 | 2.69 |
| Price-to-Sales Ratio (P/S, TTM) | 1.64 | 4.00 |
| Price-to-Book Ratio (P/B, TTM) | 6.67 | 25.16 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.22 | 27.73 |
| EV-to-EBITDA (TTM) | 12.49 | 21.29 |
| EV-to-Sales (TTM) | 2.01 | 4.23 |