AVY vs GPK

For growth investors, Avery Dennison Corporation (AVY) is the stronger pick with 1.

1% revenue growth year-over-year, versus -2. 2% for Graphic Packaging Holding Company (GPK). Graphic Packaging Holding Company (GPK) offers the better valuation at 7. 2x trailing P/E (12. 5x forward), making it the more compelling value choice. Analysts rate Avery Dennison Corporation (AVY) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Graphic Packaging Holding Company (GPK) is the cheapest at 7.

2x versus Avery Dennison Corporation at 18. 6x. On forward P/E, Graphic Packaging Holding Company is actually cheaper at 12. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Graphic Packaging Holding Company wins at 0. 63x versus Avery Dennison Corporation's 2. 78x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Avery Dennison Corporation (AVY) delivered a total return of -18.

9%, compared to -35. 4% for Graphic Packaging Holding Company (GPK). Over 10 years, the gap is even starker: AVY returned +152. 7% versus GPK's +9. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Avery Dennison Corporation (AVY) is the lower-risk stock at 0.

73β versus Graphic Packaging Holding Company's 0. 95β — meaning GPK is approximately 30% more volatile than AVY relative to the S&P 500. On balance sheet safety, Avery Dennison Corporation (AVY) carries a lower debt/equity ratio of 166% versus 167% for Graphic Packaging Holding Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Avery Dennison Corporation (AVY) is pulling ahead at 1.

1% versus -2. 2% for Graphic Packaging Holding Company (GPK). On earnings-per-share growth, the picture is similar: Avery Dennison Corporation grew EPS 0. 6% year-over-year, compared to -31. 5% for Graphic Packaging Holding Company. Over a 3-year CAGR, AVY leads at -0. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Avery Dennison Corporation (AVY) is the more profitable company, earning 7.

8% net margin versus 5. 2% for Graphic Packaging Holding Company — meaning it keeps 7. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVY leads at 12. 5% versus 10. 1% for GPK. At the gross margin level — before operating expenses — AVY leads at 28. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Graphic Packaging Holding Company (GPK) is the more undervalued stock at a PEG of 0. 63x versus Avery Dennison Corporation's 2. 78x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Graphic Packaging Holding Company (GPK) trades at 12. 5x forward P/E versus 16. 3x for Avery Dennison Corporation — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVY: 31. 3% to $214. 75.

All stocks in this comparison pay dividends.

Graphic Packaging Holding Company (GPK) offers the highest yield at 4. 1%, versus 2. 3% for Avery Dennison Corporation (AVY).

For long-horizon retirement investors, Avery Dennison Corporation (AVY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

73), 2. 3% yield, +152. 7% 10Y return). Both have compounded well over 10 years (AVY: +152. 7%, GPK: +9. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (AVY (Industrials) and GPK (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: AVY is a mid-cap quality compounder stock; GPK is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.