AVY vs. TT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVY and TT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TT’s market capitalization of 97.55 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 1.17 for TT, both stocks show similar sensitivity to overall market movements.
| Symbol | AVY | TT |
|---|---|---|
| Company Name | Avery Dennison Corporation | Trane Technologies plc |
| Country | US | IE |
| Sector | Industrials | Industrials |
| Industry | Business Equipment & Supplies | Construction |
| CEO | Deon M. Stander | David S. Regnery |
| Price | 183.24 USD | 437.39 USD |
| Market Cap | 14.32 billion USD | 97.55 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 TT 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.
TT
37.12%
Construction Industry
- Max
- 40.76%
- Q3
- 26.03%
- Median
- 16.38%
- Q1
- 5.66%
- Min
- -4.01%
In the upper quartile for the Construction industry, TT’s Return on Equity of 37.12% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
TT
20.43%
Construction Industry
- Max
- 27.38%
- Q3
- 15.45%
- Median
- 9.91%
- Q1
- 5.86%
- Min
- 2.28%
In the upper quartile for the Construction industry, TT’s Return on Invested Capital of 20.43% 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.
TT
13.47%
Construction Industry
- Max
- 24.94%
- Q3
- 14.61%
- Median
- 10.07%
- Q1
- 2.23%
- Min
- -9.49%
TT’s Net Profit Margin of 13.47% is aligned with the median group of its peers in the Construction 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.
TT
18.15%
Construction Industry
- Max
- 24.04%
- Q3
- 19.17%
- Median
- 13.63%
- Q1
- 7.69%
- Min
- -7.88%
TT’s Operating Profit Margin of 18.15% 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 | TT |
|---|---|---|
| Return on Equity (TTM) | 30.48% | 37.12% |
| Return on Assets (TTM) | 8.36% | 13.60% |
| Return on Invested Capital (TTM) | 13.21% | 20.43% |
| Net Profit Margin (TTM) | 7.98% | 13.47% |
| Operating Profit Margin (TTM) | 12.83% | 18.15% |
| Gross Profit Margin (TTM) | 28.79% | 35.93% |
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.
TT
1.09
Construction Industry
- Max
- 4.22
- Q3
- 2.59
- Median
- 1.84
- Q1
- 1.44
- Min
- 0.96
TT’s Current Ratio of 1.09 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.
TT
0.64
Construction Industry
- Max
- 1.75
- Q3
- 1.15
- Median
- 0.84
- Q1
- 0.56
- Min
- 0.05
TT’s Debt-to-Equity Ratio of 0.64 is typical for the Construction 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.
TT
15.46
Construction Industry
- Max
- 30.91
- Q3
- 15.60
- Median
- 7.16
- Q1
- 2.73
- Min
- -4.26
TT’s Interest Coverage Ratio of 15.46 is positioned comfortably within the norm for the Construction industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVY | TT |
|---|---|---|
| Current Ratio (TTM) | 1.03 | 1.09 |
| Quick Ratio (TTM) | 0.68 | 0.74 |
| Debt-to-Equity Ratio (TTM) | 1.59 | 0.64 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.32 | 0.96 |
| Interest Coverage Ratio (TTM) | 9.41 | 15.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVY and TT. 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.
TT
0.81%
Construction Industry
- Max
- 2.43%
- Q3
- 1.20%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
TT’s Dividend Yield of 0.81% 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.
TT
28.37%
Construction Industry
- Max
- 84.31%
- Q3
- 28.17%
- Median
- 11.69%
- Q1
- 0.00%
- Min
- 0.00%
TT’s Dividend Payout Ratio of 28.37% is in the upper quartile for the Construction 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 | TT |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 0.81% |
| Dividend Payout Ratio (TTM) | 40.30% | 28.37% |
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.
TT
35.67
Construction Industry
- Max
- 52.50
- Q3
- 32.30
- Median
- 22.66
- Q1
- 14.68
- Min
- 9.62
A P/E Ratio of 35.67 places TT in the upper quartile for the Construction industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
TT
3.12
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.
TT
4.80
Construction Industry
- Max
- 5.26
- Q3
- 3.38
- Median
- 1.63
- Q1
- 0.99
- Min
- 0.09
TT’s P/S Ratio of 4.80 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.
TT
13.03
Construction Industry
- Max
- 12.88
- Q3
- 6.91
- Median
- 3.04
- Q1
- 1.93
- Min
- 0.71
At 13.03, TT’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 | TT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.71 | 35.67 |
| Forward PEG Ratio (TTM) | 2.17 | 3.12 |
| Price-to-Sales Ratio (P/S, TTM) | 1.64 | 4.80 |
| Price-to-Book Ratio (P/B, TTM) | 6.67 | 13.03 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.22 | 34.48 |
| EV-to-EBITDA (TTM) | 12.49 | 24.98 |
| EV-to-Sales (TTM) | 2.01 | 5.00 |