Honeywell International Inc. or Avery Dennison Corporation: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Honeywell International Inc. and Avery Dennison Corporation, two stalwarts in their respective fields, have shown contrasting trends in their SG&A management over the past decade.

From 2014 to 2023, Honeywell's SG&A expenses have fluctuated, peaking in 2018 and then gradually declining by approximately 23% by 2023. This trend suggests a strategic focus on cost optimization. In contrast, Avery Dennison's SG&A expenses have shown a more stable trajectory, with a notable increase of about 15% from 2020 to 2022, reflecting potential investments in growth initiatives.

These trends highlight the different strategic priorities of these companies. While Honeywell appears to be tightening its belt, Avery Dennison might be leveraging its SG&A for expansion. Understanding these dynamics can offer valuable insights for investors and industry analysts alike.