WallStSmart

Avery Dennison Corp (AVY)vsKarat Packaging Inc (KRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Avery Dennison Corp generates 1793% more annual revenue ($8.86B vs $467.74M). AVY leads profitability with a 7.8% profit margin vs 6.7%. KRT trades at a lower P/E of 17.8x. AVY earns a higher WallStSmart Score of 53/100 (C-).

AVY

Buy

53

out of 100

Grade: C-

Growth: 2.7Profit: 7.0Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.55

KRT

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 8.3Quality: 8.0
Piotroski: 3/9Altman Z: 3.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVYSignificantly Overvalued (-222.5%)

Margin of Safety

-222.5%

Fair Value

$59.77

Current Price

$170.64

$110.87 premium

UndervaluedFair: $59.77Overvalued
KRTUndervalued (+58.9%)

Margin of Safety

+58.9%

Fair Value

$63.52

Current Price

$28.17

$35.35 discount

UndervaluedFair: $63.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVY1 strengths · Avg: 10.0/10
Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

KRT4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.5710/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.5%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

Areas to Watch

AVY4 concerns · Avg: 3.5/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Debt/EquityHealth
1.663/10

Elevated debt levels

KRT3 concerns · Avg: 3.0/10
Market CapQuality
$556.96M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AVY

The strongest argument for AVY centers on Return on Equity.

Bull Case : KRT

The strongest argument for KRT centers on Altman Z-Score, Return on Equity, P/E Ratio. Revenue growth of 13.7% demonstrates continued momentum.

Bear Case : AVY

The primary concerns for AVY are PEG Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : KRT

The primary concerns for KRT are Market Cap, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

KRT carries more volatility with a beta of 1.06 — expect wider price swings.

KRT is growing revenue faster at 13.7% — sustainability is the question.

AVY generates stronger free cash flow (310M), providing more financial flexibility.

Monitor PACKAGING & CONTAINERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AVY scores higher overall (53/100 vs 52/100). KRT offers better value entry with a 58.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Avery Dennison Corp

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

Avery Dennison Corporation is a multinational manufacturer and distributor of pressure-sensitive adhesive materials (such as self-adhesive labels), apparel branding labels and tags, RFID inlays, and specialty medical products. The company is headquartered in Glendale, California.

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Karat Packaging Inc

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymers, and other compostable forms that are primarily used in restaurants and food service areas. The company is headquartered in Chino, California.

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