AVY vs. LMT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVY and LMT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LMT’s market capitalization of 108.37 billion USD is significantly greater than AVY’s 14.32 billion USD, highlighting its more substantial market valuation.
AVY’s beta of 0.89 points to significantly higher volatility compared to LMT (beta: 0.29), suggesting AVY has greater potential for both gains and losses relative to market movements.
| Symbol | AVY | LMT |
|---|---|---|
| Company Name | Avery Dennison Corporation | Lockheed Martin Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Business Equipment & Supplies | Aerospace & Defense |
| CEO | Deon M. Stander | James D. Taiclet Jr. |
| Price | 183.24 USD | 462.52 USD |
| Market Cap | 14.32 billion USD | 108.37 billion USD |
| Beta | 0.89 | 0.29 |
| Exchange | NYSE | NYSE |
| IPO Date | April 4, 1977 | January 3, 1977 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVY and LMT 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.
LMT
83.41%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
LMT’s Return on Equity of 83.41% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense 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.
LMT
17.14%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
In the upper quartile for the Aerospace & Defense industry, LMT’s Return on Invested Capital of 17.14% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
LMT
7.66%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
LMT’s Net Profit Margin of 7.66% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
LMT
10.34%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
LMT’s Operating Profit Margin of 10.34% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AVY | LMT |
|---|---|---|
| Return on Equity (TTM) | 30.48% | 83.41% |
| Return on Assets (TTM) | 8.36% | 9.71% |
| Return on Invested Capital (TTM) | 13.21% | 17.14% |
| Net Profit Margin (TTM) | 7.98% | 7.66% |
| Operating Profit Margin (TTM) | 12.83% | 10.34% |
| Gross Profit Margin (TTM) | 28.79% | 10.23% |
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.
LMT
1.08
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
LMT’s Current Ratio of 1.08 falls into the lower quartile for the Aerospace & Defense 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.
LMT
3.04
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.04, LMT operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
LMT
7.08
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
LMT’s Interest Coverage Ratio of 7.08 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVY | LMT |
|---|---|---|
| Current Ratio (TTM) | 1.03 | 1.08 |
| Quick Ratio (TTM) | 0.68 | 0.91 |
| Debt-to-Equity Ratio (TTM) | 1.59 | 3.04 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.36 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.32 | 2.04 |
| Interest Coverage Ratio (TTM) | 9.41 | 7.08 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVY and LMT. 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.
LMT
2.82%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.82%, LMT offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.
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.
LMT
55.88%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
LMT’s Dividend Payout Ratio of 55.88% is in the upper quartile for the Aerospace & Defense industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AVY | LMT |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 2.82% |
| Dividend Payout Ratio (TTM) | 40.30% | 55.88% |
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.
LMT
19.70
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
In the lower quartile for the Aerospace & Defense industry, LMT’s P/E Ratio of 19.70 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
LMT
5.49
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
A Forward PEG Ratio of 5.49 places LMT in the upper quartile for the Aerospace & Defense industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
LMT
1.51
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
In the lower quartile for the Aerospace & Defense industry, LMT’s P/S Ratio of 1.51 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
LMT
16.22
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
At 16.22, LMT’s P/B Ratio is at an extreme premium to the Aerospace & Defense 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 | LMT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.71 | 19.70 |
| Forward PEG Ratio (TTM) | 2.17 | 5.49 |
| Price-to-Sales Ratio (P/S, TTM) | 1.64 | 1.51 |
| Price-to-Book Ratio (P/B, TTM) | 6.67 | 16.22 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.22 | 21.74 |
| EV-to-EBITDA (TTM) | 12.49 | 13.98 |
| EV-to-Sales (TTM) | 2.01 | 1.77 |