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AVY vs GPC

AVY
Avery Dennison Corporation
NEUTRAL
Price
$187.43
Market Cap
$14.49B
Sector
Consumer Cyclical
AI Confidence
72%
GPC
Genuine Parts Company
BEARISH
Price
$106.56
Market Cap
$14.82B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
AVY
21.11
GPC
242.18
Forward P/E
AVY
17.99
GPC
12.73
P/B Ratio
AVY
6.57
GPC
3.28
P/S Ratio
AVY
1.65
GPC
0.6
EV/EBITDA
AVY
12.32
GPC
10.27

Profitability

Gross Margin
AVY
28.56%
GPC
37.52%
Operating Margin
AVY
12.69%
GPC
5.77%
Profit Margin
AVY
7.93%
GPC
0.24%
ROE
AVY
30.21%
GPC
1.34%
ROA
AVY
8.29%
GPC
4.54%

Growth

Revenue Growth
AVY
1.5%
GPC
6.8%
Earnings Growth
AVY
-5.3%
GPC
-2.1%

Financial Health

Debt/Equity
AVY
1.71
GPC
1.49
Current Ratio
AVY
1.26
GPC
1.09
Quick Ratio
AVY
0.79
GPC
0.39

Dividends

Dividend Yield
AVY
2.02%
GPC
3.99%
Payout Ratio
AVY
41.32%
GPC
943.75%

AI Verdict

AVY NEUTRAL

The Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a definitive bankruptcy risk assessment. Despite solid profitability metrics like a 30.21% ROE and manageable 41.32% payout ratio, weak earnings growth and a bearish technical trend weigh on momentum. Valuation appears stretched relative to Graham’s defensive benchmark of $75.48, though forward P/E of 17.99 suggests some optimism. Analysts recommend a buy with a $206.80 target, implying 10.3% upside, but recent price performance has been flat over the past year.

Strengths
High ROE of 30.21% indicates strong return on shareholder equity
Dividend payout ratio of 41.32% is sustainable with room for future increases
Forward P/E of 17.99 is below sector average of 50.08, suggesting relative value
Risks
Piotroski F-Score of 4/9 reflects marginal financial health with recent earnings declines
Earnings growth YoY at -5.30% and Q/Q EPS down 2.1% signal weakening profitability
Technical trend score of 10/100 indicates strong bearish momentum near-term
GPC BEARISH

GPC exhibits a stable Piotroski F-Score of 6/9, but this is overshadowed by severe valuation discrepancies and unsustainable dividend metrics. The stock trades at a massive premium to its Graham Number ($17.94) and Intrinsic Value ($3.08), while the current P/E of 242.18 indicates a collapse in recent earnings. Most critically, a payout ratio of 943.75% suggests the dividend is currently unfunded by earnings, posing a significant risk of a dividend cut.

Strengths
Stable Piotroski F-Score (6/9) indicating baseline financial health
Positive revenue growth (6.80% YoY)
Attractive Forward P/E (12.73) suggesting expected earnings recovery
Risks
Unsustainable dividend payout ratio (943.75%)
Severe overvaluation relative to Graham Number and Intrinsic Value
Poor liquidity indicated by a Quick Ratio of 0.39

Compare Another Pair

AVY vs GPC: Head-to-Head Comparison

This page compares Avery Dennison Corporation (AVY) and Genuine Parts Company (GPC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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