InvestBattle | Ball vs Avery Dennison

March 8, 2024by

As we noted in last week’s issue, over the past three months, one of the leaders of growth in the S&P 500 index has been the Containers & Packaging industry (+8.5%).

The largest companies in this industry (by market capitalization): Ball ($20.2B), the world’s largest manufacturer of metal cans, and Avery Dennison ($17.4B), which specializes in the production of labeling materials.

According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.

As you can see, in terms of fundamentals, both companies are currently showing quite strong results. Avery Dennison is superior to Ball in terms of strength. Both companies look attractive for medium- and long-term investments.

Over the past 3 months, Ball stock has risen by +17% and Avery Dennison by +12% (the S&P 500 index is up +12%). Ball has not only outperformed its closest competitor, but also demonstrated better results compared to the index.

So, there is no single winner in today’s battle. Avery Dennison’s business looks healthier in terms of financing, but Ball’s stock is showing better dynamics.

* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
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