RPC Group (OTCMKTS:RPCGF) versus Avery Dennison (NYSE:AVY) Financial Analysis

Avery Dennison (NYSE:AVY) and RPC Group (OTCMKTS:RPCGF) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

Avery Dennison has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, RPC Group has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Institutional and Insider Ownership

94.2% of Avery Dennison shares are held by institutional investors. 0.8% of Avery Dennison shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Avery Dennison and RPC Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avery Dennison	7.62%	34.60%	8.76%
RPC Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Avery Dennison and RPC Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avery Dennison	0	2	7	0	2.78
RPC Group	0	0	0	0	0.00

Avery Dennison currently has a consensus price target of $201.22, indicating a potential upside of 13.63%. Given Avery Dennison’s stronger consensus rating and higher probable upside, research analysts clearly believe Avery Dennison is more favorable than RPC Group.

Earnings and Valuation

This table compares Avery Dennison and RPC Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avery Dennison	$8.86 billion	1.52	$688.00 million	$9.13	19.40
RPC Group	$4.97 billion	0.85	$336.18 million	N/A	N/A

Avery Dennison has higher revenue and earnings than RPC Group.

Summary

Avery Dennison beats RPC Group on 12 of the 12 factors compared between the two stocks.

About Avery Dennison

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally. It provides pressure-sensitive materials comprising papers, plastic films, metal foils, and fabrics; performance tapes products, including tapes for wire harnessing, as well as cable wrapping for automotive, electrical, and general industrial applications; mechanical fasteners, which are precision-extruded and injection-molded plastic devices used in various automotive, general industrial, and retail applications; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, Yongle, and Avery Dennison brands. The company also offers graphics and reflective products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation market segments; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials designed for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it provides branding solutions include brand embellishments, graphic tickets, tags, and labels, and sustainable packaging; and information solutions include item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media solutions, and brand protection and security solutions, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Mentor, Ohio.

About RPC Group

RPC Group Plc operates as a plastic product design and engineering company worldwide. It operates through two segments, Packaging and Non-Packaging. The Packaging segment designs plastic packaging for end markets, including the food, beverage, personal care, and healthcare markets; and designs and manufactures other plastic products, such as containers for surface coatings comprising paint pots and vaping accessories. It sells its products directly to the brands, as well as to retailers or fillers. The Non-Packaging segment designs and manufactures a range of plastic products that include temporary storage systems for waste and recycling; and technical components for the automotive and heavy vehicles industries. It also makes moulds, which are used to make plastic components and packaging products. This segment sells its products to intermediaries. The company was founded in 1991 and is headquartered in Rushden, the United Kingdom.