Seek Returns logo

AVY vs. XPO: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AVY and XPO, 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 XPO’s is 15.57 billion USD, indicating their market valuations are broadly comparable.

XPO carries a higher beta at 1.74, indicating it’s more sensitive to market moves, while AVY (beta: 0.89) exhibits greater stability.

SymbolAVYXPO
Company NameAvery Dennison CorporationXPO Logistics, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryBusiness Equipment & SuppliesIntegrated Freight & Logistics
CEODeon M. StanderMario A. Harik
Price183.24 USD132.13 USD
Market Cap14.32 billion USD15.57 billion USD
Beta0.891.74
ExchangeNYSENYSE
IPO DateApril 4, 1977October 7, 2003
ADRNoNo

Historical Performance

This chart compares the performance of AVY and XPO 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.

AVY vs. XPO: Growth of a $10,000 investment over the past one year.

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.

XPO

24.38%

Integrated Freight & Logistics Industry

Max
37.37%
Q3
30.76%
Median
15.30%
Q1
6.33%
Min
-26.64%

XPO’s Return on Equity of 24.38% is on par with the norm for the Integrated Freight & Logistics industry, indicating its profitability relative to shareholder equity is typical for the sector.

AVY vs. XPO: A comparison of their ROE against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

8.38%

Integrated Freight & Logistics Industry

Max
17.03%
Q3
12.11%
Median
8.38%
Q1
2.55%
Min
0.79%

XPO’s Return on Invested Capital of 8.38% is in line with the norm for the Integrated Freight & Logistics industry, reflecting a standard level of efficiency in generating profits from its capital base.

AVY vs. XPO: A comparison of their ROIC against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

4.86%

Integrated Freight & Logistics Industry

Max
7.64%
Q3
4.86%
Median
3.72%
Q1
0.61%
Min
0.61%

XPO’s Net Profit Margin of 4.86% is aligned with the median group of its peers in the Integrated Freight & Logistics industry. This indicates its ability to convert revenue into profit is typical for the sector.

AVY vs. XPO: A comparison of their Net Profit Margin against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

8.14%

Integrated Freight & Logistics Industry

Max
11.80%
Q3
9.36%
Median
5.93%
Q1
3.63%
Min
0.83%

XPO’s Operating Profit Margin of 8.14% is around the midpoint for the Integrated Freight & Logistics industry, indicating that its efficiency in managing core business operations is typical for the sector.

AVY vs. XPO: A comparison of their Operating Margin against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

Profitability at a Glance

SymbolAVYXPO
Return on Equity (TTM)30.48%24.38%
Return on Assets (TTM)8.36%4.94%
Return on Invested Capital (TTM)13.21%8.38%
Net Profit Margin (TTM)7.98%4.86%
Operating Profit Margin (TTM)12.83%8.14%
Gross Profit Margin (TTM)28.79%11.31%

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.

XPO

1.02

Integrated Freight & Logistics Industry

Max
1.83
Q3
1.36
Median
1.13
Q1
1.02
Min
0.78

XPO’s Current Ratio of 1.02 aligns with the median group of the Integrated Freight & Logistics industry, indicating that its short-term liquidity is in line with its sector peers.

AVY vs. XPO: A comparison of their Current Ratio against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

2.51

Integrated Freight & Logistics Industry

Max
2.51
Q3
1.69
Median
0.45
Q1
0.24
Min
0.16

XPO’s leverage is in the upper quartile of the Integrated Freight & Logistics industry, with a Debt-to-Equity Ratio of 2.51. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AVY vs. XPO: A comparison of their D/E Ratio against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

2.95

Integrated Freight & Logistics Industry

Max
19.14
Q3
12.59
Median
6.24
Q1
1.76
Min
0.11

XPO’s Interest Coverage Ratio of 2.95 is positioned comfortably within the norm for the Integrated Freight & Logistics industry, indicating a standard and healthy capacity to cover its interest payments.

AVY vs. XPO: A comparison of their Interest Coverage against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

Financial Strength at a Glance

SymbolAVYXPO
Current Ratio (TTM)1.031.02
Quick Ratio (TTM)0.681.02
Debt-to-Equity Ratio (TTM)1.592.51
Debt-to-Asset Ratio (TTM)0.410.52
Net Debt-to-EBITDA Ratio (TTM)2.323.30
Interest Coverage Ratio (TTM)9.412.95

Growth

The following charts compare key year-over-year (YoY) growth metrics for AVY and XPO. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AVY vs. XPO: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AVY vs. XPO: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AVY vs. XPO: A comparison of their annual year-over-year 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.

XPO

0.00%

Integrated Freight & Logistics Industry

Max
6.46%
Q3
2.50%
Median
1.47%
Q1
0.00%
Min
0.00%

XPO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

AVY vs. XPO: A comparison of their Dividend Yield against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

0.00%

Integrated Freight & Logistics Industry

Max
92.20%
Q3
43.42%
Median
30.12%
Q1
0.00%
Min
0.00%

XPO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

AVY vs. XPO: A comparison of their Payout Ratio against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

Dividend at a Glance

SymbolAVYXPO
Dividend Yield (TTM)1.95%0.00%
Dividend Payout Ratio (TTM)40.30%0.00%

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.

XPO

39.74

Integrated Freight & Logistics Industry

Max
38.34
Q3
27.03
Median
21.39
Q1
15.71
Min
10.86

At 39.74, XPO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Integrated Freight & Logistics industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AVY vs. XPO: A comparison of their P/E Ratio against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

1.63

Integrated Freight & Logistics Industry

Max
2.14
Q3
1.72
Median
1.10
Q1
0.87
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Integrated Freight & Logistics industry.

AVY vs. XPO: A comparison of their Forward PEG Ratio against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

1.94

Integrated Freight & Logistics Industry

Max
2.22
Q3
1.42
Median
0.94
Q1
0.62
Min
0.30

XPO’s P/S Ratio of 1.94 is in the upper echelon for the Integrated Freight & Logistics 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.

AVY vs. XPO: A comparison of their P/S Ratio against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

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.

XPO

9.43

Integrated Freight & Logistics Industry

Max
9.09
Q3
5.80
Median
3.47
Q1
1.54
Min
0.57

At 9.43, XPO’s P/B Ratio is at an extreme premium to the Integrated Freight & Logistics 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.

AVY vs. XPO: A comparison of their P/B Ratio against their respective Business Equipment & Supplies and Integrated Freight & Logistics industry benchmarks.

Valuation at a Glance

SymbolAVYXPO
Price-to-Earnings Ratio (P/E, TTM)20.7139.74
Forward PEG Ratio (TTM)2.171.63
Price-to-Sales Ratio (P/S, TTM)1.641.94
Price-to-Book Ratio (P/B, TTM)6.679.43
Price-to-Free Cash Flow Ratio (P/FCF, TTM)24.22130.81
EV-to-EBITDA (TTM)12.4916.50
EV-to-Sales (TTM)2.012.43