AVY vs. VLTO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVY and VLTO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
VLTO’s market capitalization of 25.72 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 1.15 for VLTO, both stocks show similar sensitivity to overall market movements.
| Symbol | AVY | VLTO |
|---|---|---|
| Company Name | Avery Dennison Corporation | Veralto Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Business Equipment & Supplies | Industrial - Pollution & Treatment Controls |
| CEO | Deon M. Stander | Jennifer L. Honeycutt |
| Price | 183.24 USD | 103.75 USD |
| Market Cap | 14.32 billion USD | 25.72 billion USD |
| Beta | 0.89 | 1.15 |
| Exchange | NYSE | NYSE |
| IPO Date | April 4, 1977 | October 4, 2023 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVY and VLTO 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.
VLTO
43.92%
Industrial - Pollution & Treatment Controls Industry
- Max
- 43.92%
- Q3
- 31.35%
- Median
- 18.20%
- Q1
- 10.35%
- Min
- 9.96%
In the upper quartile for the Industrial - Pollution & Treatment Controls industry, VLTO’s Return on Equity of 43.92% 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.
VLTO
17.55%
Industrial - Pollution & Treatment Controls Industry
- Max
- 22.72%
- Q3
- 15.77%
- Median
- 9.29%
- Q1
- 7.94%
- Min
- 7.79%
In the upper quartile for the Industrial - Pollution & Treatment Controls industry, VLTO’s Return on Invested Capital of 17.55% 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.
VLTO
16.56%
Industrial - Pollution & Treatment Controls Industry
- Max
- 16.56%
- Q3
- 13.22%
- Median
- 11.10%
- Q1
- 9.26%
- Min
- 7.80%
A Net Profit Margin of 16.56% places VLTO in the upper quartile for the Industrial - Pollution & Treatment Controls 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.
VLTO
23.43%
Industrial - Pollution & Treatment Controls Industry
- Max
- 16.16%
- Q3
- 15.94%
- Median
- 15.45%
- Q1
- 13.88%
- Min
- 12.84%
VLTO’s Operating Profit Margin of 23.43% is exceptionally high, placing it well above the typical range for the Industrial - Pollution & Treatment Controls industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | AVY | VLTO |
|---|---|---|
| Return on Equity (TTM) | 30.48% | 43.92% |
| Return on Assets (TTM) | 8.36% | 13.15% |
| Return on Invested Capital (TTM) | 13.21% | 17.55% |
| Net Profit Margin (TTM) | 7.98% | 16.56% |
| Operating Profit Margin (TTM) | 12.83% | 23.43% |
| Gross Profit Margin (TTM) | 28.79% | 59.73% |
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.
VLTO
2.19
Industrial - Pollution & Treatment Controls Industry
- Max
- 2.87
- Q3
- 2.63
- Median
- 2.23
- Q1
- 1.95
- Min
- 1.71
VLTO’s Current Ratio of 2.19 aligns with the median group of the Industrial - Pollution & Treatment Controls industry, indicating that its short-term liquidity is in line with its sector peers.
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.
VLTO
1.14
Industrial - Pollution & Treatment Controls Industry
- Max
- 2.22
- Q3
- 1.51
- Median
- 1.14
- Q1
- 0.31
- Min
- 0.06
VLTO’s Debt-to-Equity Ratio of 1.14 is typical for the Industrial - Pollution & Treatment Controls 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.
VLTO
11.04
Industrial - Pollution & Treatment Controls Industry
- Max
- 11.04
- Q3
- 10.64
- Median
- 8.76
- Q1
- 7.06
- Min
- 6.72
VLTO’s Interest Coverage Ratio of 11.04 is in the upper quartile for the Industrial - Pollution & Treatment Controls industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AVY | VLTO |
|---|---|---|
| Current Ratio (TTM) | 1.03 | 2.19 |
| Quick Ratio (TTM) | 0.68 | 1.92 |
| Debt-to-Equity Ratio (TTM) | 1.59 | 1.14 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.40 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.32 | 1.06 |
| Interest Coverage Ratio (TTM) | 9.41 | 11.04 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVY and VLTO. 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.
VLTO
0.40%
Industrial - Pollution & Treatment Controls Industry
- Max
- 0.96%
- Q3
- 0.46%
- Median
- 0.40%
- Q1
- 0.00%
- Min
- 0.00%
VLTO’s Dividend Yield of 0.40% is consistent with its peers in the Industrial - Pollution & Treatment Controls 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.
VLTO
7.67%
Industrial - Pollution & Treatment Controls Industry
- Max
- 34.16%
- Q3
- 11.08%
- Median
- 6.71%
- Q1
- 0.00%
- Min
- 0.00%
VLTO’s Dividend Payout Ratio of 7.67% is within the typical range for the Industrial - Pollution & Treatment Controls industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVY | VLTO |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 0.40% |
| Dividend Payout Ratio (TTM) | 40.30% | 7.67% |
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.
VLTO
29.43
Industrial - Pollution & Treatment Controls Industry
- Max
- 36.69
- Q3
- 31.81
- Median
- 29.46
- Q1
- 23.56
- Min
- 16.05
VLTO’s P/E Ratio of 29.43 is within the middle range for the Industrial - Pollution & Treatment Controls 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.
VLTO
3.01
Industrial - Pollution & Treatment Controls Industry
- Max
- 3.43
- Q3
- 2.71
- Median
- 1.57
- Q1
- 0.68
- Min
- 0.12
A Forward PEG Ratio of 3.01 places VLTO in the upper quartile for the Industrial - Pollution & Treatment Controls 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.
VLTO
4.87
Industrial - Pollution & Treatment Controls Industry
- Max
- 4.88
- Q3
- 4.81
- Median
- 3.88
- Q1
- 2.58
- Min
- 1.72
VLTO’s P/S Ratio of 4.87 is in the upper echelon for the Industrial - Pollution & Treatment Controls 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.
VLTO
11.17
Industrial - Pollution & Treatment Controls Industry
- Max
- 11.18
- Q3
- 10.54
- Median
- 5.31
- Q1
- 3.82
- Min
- 3.50
VLTO’s P/B Ratio of 11.17 is in the upper tier for the Industrial - Pollution & Treatment Controls industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | AVY | VLTO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.71 | 29.43 |
| Forward PEG Ratio (TTM) | 2.17 | 3.01 |
| Price-to-Sales Ratio (P/S, TTM) | 1.64 | 4.87 |
| Price-to-Book Ratio (P/B, TTM) | 6.67 | 11.17 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.22 | 29.90 |
| EV-to-EBITDA (TTM) | 12.49 | 20.68 |
| EV-to-Sales (TTM) | 2.01 | 5.13 |