AVY vs. SWK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVY and SWK, 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 SWK’s is 11.00 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.89 for AVY and 1.17 for SWK, both stocks show similar sensitivity to overall market movements.
| Symbol | AVY | SWK |
|---|---|---|
| Company Name | Avery Dennison Corporation | Stanley Black & Decker, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Business Equipment & Supplies | Manufacturing - Tools & Accessories |
| CEO | Deon M. Stander | Donald Allan Jr. |
| Price | 183.24 USD | 71.1 USD |
| Market Cap | 14.32 billion USD | 11.00 billion USD |
| Beta | 0.89 | 1.17 |
| Exchange | NYSE | NYSE |
| IPO Date | April 4, 1977 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVY and SWK 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.
SWK
4.07%
Manufacturing - Tools & Accessories Industry
- Max
- 34.68%
- Q3
- 20.63%
- Median
- 10.07%
- Q1
- 7.35%
- Min
- 1.56%
SWK’s Return on Equity of 4.07% is in the lower quartile for the Manufacturing - Tools & Accessories industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
SWK
7.32%
Manufacturing - Tools & Accessories Industry
- Max
- 18.96%
- Q3
- 14.59%
- Median
- 7.53%
- Q1
- 6.50%
- Min
- 2.74%
SWK’s Return on Invested Capital of 7.32% is in line with the norm for the Manufacturing - Tools & Accessories industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
SWK
2.34%
Manufacturing - Tools & Accessories Industry
- Max
- 21.42%
- Q3
- 12.34%
- Median
- 8.01%
- Q1
- 4.68%
- Min
- 1.24%
Falling into the lower quartile for the Manufacturing - Tools & Accessories industry, SWK’s Net Profit Margin of 2.34% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
SWK
7.81%
Manufacturing - Tools & Accessories Industry
- Max
- 27.46%
- Q3
- 18.11%
- Median
- 11.96%
- Q1
- 8.53%
- Min
- 6.01%
SWK’s Operating Profit Margin of 7.81% is in the lower quartile for the Manufacturing - Tools & Accessories industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AVY | SWK |
|---|---|---|
| Return on Equity (TTM) | 30.48% | 4.07% |
| Return on Assets (TTM) | 8.36% | 1.59% |
| Return on Invested Capital (TTM) | 13.21% | 7.32% |
| Net Profit Margin (TTM) | 7.98% | 2.34% |
| Operating Profit Margin (TTM) | 12.83% | 7.81% |
| Gross Profit Margin (TTM) | 28.79% | 29.92% |
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.
SWK
1.10
Manufacturing - Tools & Accessories Industry
- Max
- 4.14
- Q3
- 3.17
- Median
- 2.45
- Q1
- 1.81
- Min
- 1.10
SWK’s Current Ratio of 1.10 falls into the lower quartile for the Manufacturing - Tools & Accessories 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.
SWK
0.76
Manufacturing - Tools & Accessories Industry
- Max
- 0.94
- Q3
- 0.78
- Median
- 0.72
- Q1
- 0.31
- Min
- 0.05
SWK’s Debt-to-Equity Ratio of 0.76 is typical for the Manufacturing - Tools & Accessories industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
SWK
2.41
Manufacturing - Tools & Accessories Industry
- Max
- 14.51
- Q3
- 10.02
- Median
- 6.60
- Q1
- 5.24
- Min
- 1.53
In the lower quartile for the Manufacturing - Tools & Accessories industry, SWK’s Interest Coverage Ratio of 2.41 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AVY | SWK |
|---|---|---|
| Current Ratio (TTM) | 1.03 | 1.10 |
| Quick Ratio (TTM) | 0.68 | 0.36 |
| Debt-to-Equity Ratio (TTM) | 1.59 | 0.76 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.30 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.32 | 4.61 |
| Interest Coverage Ratio (TTM) | 9.41 | 2.41 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVY and SWK. 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.
SWK
4.61%
Manufacturing - Tools & Accessories Industry
- Max
- 4.85%
- Q3
- 2.87%
- Median
- 2.00%
- Q1
- 1.05%
- Min
- 0.00%
With a Dividend Yield of 4.61%, SWK offers a more attractive income stream than most of its peers in the Manufacturing - Tools & Accessories 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.
SWK
138.27%
Manufacturing - Tools & Accessories Industry
- Max
- 138.27%
- Q3
- 47.32%
- Median
- 36.66%
- Q1
- 23.90%
- Min
- 0.00%
SWK’s Dividend Payout Ratio of 138.27% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | AVY | SWK |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 4.61% |
| Dividend Payout Ratio (TTM) | 40.30% | 138.27% |
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.
SWK
30.06
Manufacturing - Tools & Accessories Industry
- Max
- 48.52
- Q3
- 33.58
- Median
- 21.58
- Q1
- 16.21
- Min
- 15.65
SWK’s P/E Ratio of 30.06 is within the middle range for the Manufacturing - Tools & Accessories 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.
SWK
1.14
Manufacturing - Tools & Accessories Industry
- Max
- 5.86
- Q3
- 4.35
- Median
- 3.53
- Q1
- 1.63
- Min
- 0.87
In the lower quartile for the Manufacturing - Tools & Accessories industry, SWK’s Forward PEG Ratio of 1.14 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
SWK
0.72
Manufacturing - Tools & Accessories Industry
- Max
- 3.41
- Q3
- 3.03
- Median
- 1.33
- Q1
- 0.93
- Min
- 0.69
In the lower quartile for the Manufacturing - Tools & Accessories industry, SWK’s P/S Ratio of 0.72 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.
SWK
1.21
Manufacturing - Tools & Accessories Industry
- Max
- 4.75
- Q3
- 4.14
- Median
- 2.35
- Q1
- 1.37
- Min
- 1.16
SWK’s P/B Ratio of 1.21 is in the lower quartile for the Manufacturing - Tools & Accessories industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AVY | SWK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.71 | 30.06 |
| Forward PEG Ratio (TTM) | 2.17 | 1.14 |
| Price-to-Sales Ratio (P/S, TTM) | 1.64 | 0.72 |
| Price-to-Book Ratio (P/B, TTM) | 6.67 | 1.21 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.22 | 14.38 |
| EV-to-EBITDA (TTM) | 12.49 | 12.54 |
| EV-to-Sales (TTM) | 2.01 | 1.14 |