AVY vs SON

For growth investors, Sonoco Products Company (SON) is the stronger pick with 41.

7% revenue growth year-over-year, versus 1. 1% for Avery Dennison Corporation (AVY). Sonoco Products Company (SON) offers the better valuation at 13. 1x trailing P/E (8. 9x 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, Sonoco Products Company (SON) is the cheapest at 13.

1x versus Avery Dennison Corporation at 19. 0x. On forward P/E, Sonoco Products Company is actually cheaper at 8. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Sonoco Products Company wins at 0. 63x versus Avery Dennison Corporation's 2. 84x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Sonoco Products Company (SON) delivered a total return of -10.

1%, compared to -17. 0% for Avery Dennison Corporation (AVY). Over 10 years, the gap is even starker: AVY returned +158. 0% versus SON's +50. 2%. 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), Sonoco Products Company (SON) is the lower-risk stock at 0.

53β versus Avery Dennison Corporation's 0. 72β — meaning AVY is approximately 35% more volatile than SON relative to the S&P 500. On balance sheet safety, Sonoco Products Company (SON) carries a lower debt/equity ratio of 134% versus 166% for Avery Dennison Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sonoco Products Company (SON) is pulling ahead at 41.

7% versus 1. 1% for Avery Dennison Corporation (AVY). On earnings-per-share growth, the picture is similar: Sonoco Products Company grew EPS 141. 2% year-over-year, compared to 0. 6% for Avery Dennison Corporation. Over a 3-year CAGR, SON leads at 8. 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. 3% for Sonoco Products 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 9. 5% for SON. 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, Sonoco Products Company (SON) is the more undervalued stock at a PEG of 0. 63x versus Avery Dennison Corporation's 2. 84x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Sonoco Products Company (SON) trades at 8. 9x forward P/E versus 16. 6x for Avery Dennison Corporation — 7. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVY: 28. 8% to $214. 75.

All stocks in this comparison pay dividends.

Sonoco Products Company (SON) offers the highest yield at 4. 0%, versus 2. 2% for Avery Dennison Corporation (AVY).

For long-horizon retirement investors, Sonoco Products Company (SON) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

53), 4. 0% yield). Both have compounded well over 10 years (SON: +50. 2%, AVY: +158. 0%), 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 SON (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; SON is a small-cap high-growth 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.