Avery Dennison vs 3M Which Is More Profitable?

Avery Dennison and 3M are both leading companies in the manufacturing and distribution of industrial and consumer products. Avery Dennison specializes in adhesive technologies, labeling, and packaging solutions, while 3M is known for its wide range of products in sectors including healthcare, electronics, and transportation. Both companies are publicly traded on the stock market, with Avery Dennison's stock performance often being compared to that of 3M. Investors closely monitor the financial performance and market trends of these two companies to make informed investment decisions.

Avery Dennison or 3M?

When comparing Avery Dennison and 3M, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Avery Dennison and 3M.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Avery Dennison has a dividend yield of 1.77%, while 3M has a dividend yield of 2.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Avery Dennison reports a 5-year dividend growth of 9.61% year and a payout ratio of 40.40%. On the other hand, 3M reports a 5-year dividend growth of 4.81% year and a payout ratio of 55.40%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Avery Dennison P/E ratio at 23.29 and 3M's P/E ratio at 16.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Avery Dennison P/B ratio is 6.56 while 3M's P/B ratio is 15.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Avery Dennison has seen a 5-year revenue growth of 0.23%, while 3M's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Avery Dennison's ROE at 29.91% and 3M's ROE at 96.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $194.90 for Avery Dennison and $128.91 for 3M. Over the past year, Avery Dennison's prices ranged from $193.49 to $233.48, with a yearly change of 20.67%. 3M's prices fluctuated between $75.65 and $141.34, with a yearly change of 86.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.