Contrasting Greystone Logistics (OTCMKTS:GLGI) & Avery Dennison (NYSE:AVY)

Greystone Logistics (OTCMKTS:GLGI) and Avery Dennison (NYSE:AVY) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Greystone Logistics and Avery Dennison, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Logistics	0	0	0	0	0.00
Avery Dennison	0	2	7	0	2.78

Avery Dennison 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, analysts plainly believe Avery Dennison is more favorable than Greystone Logistics.

Earnings and Valuation

This table compares Greystone Logistics and Avery Dennison”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Logistics	$57.87 million	0.11	$2.35 million	($0.17)	-1.33
Avery Dennison	$8.86 billion	1.52	$688.00 million	$9.13	19.40

Avery Dennison has higher revenue and earnings than Greystone Logistics. Greystone Logistics is trading at a lower price-to-earnings ratio than Avery Dennison, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Greystone Logistics has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500. Comparatively, Avery Dennison has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Greystone Logistics	-11.80%	-27.34%	-11.15%
Avery Dennison	7.62%	34.60%	8.76%

Institutional & Insider Ownership

10.3% of Greystone Logistics shares are owned by institutional investors. Comparatively, 94.2% of Avery Dennison shares are owned by institutional investors. 0.8% of Avery Dennison shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Avery Dennison beats Greystone Logistics on 14 of the 14 factors compared between the two stocks.

About Greystone Logistics

Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.

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.