Head-To-Head Review: Perimeter Solutions (PRM) versus Its Rivals

Perimeter Solutions (NYSE:PRM – Get Rating) is one of 32 publicly-traded companies in the “Chemicals & allied products” industry, but how does it contrast to its peers? We will compare Perimeter Solutions to related businesses based on the strength of its dividends, institutional ownership, valuation, profitability, risk, earnings and analyst recommendations.

Risk & Volatility

Perimeter Solutions has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Perimeter Solutions’ peers have a beta of 0.43, suggesting that their average stock price is 57% less volatile than the S&P 500.

Profitability

This table compares Perimeter Solutions and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	17.58%	0.20%	0.09%
Perimeter Solutions Competitors	-16.68%	18.58%	6.13%

Analyst Recommendations

This is a summary of current ratings and price targets for Perimeter Solutions and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	0	2	0	3.00
Perimeter Solutions Competitors	119	895	1458	42	2.57

Perimeter Solutions presently has a consensus price target of $14.50, indicating a potential upside of 86.62%. As a group, “Chemicals & allied products” companies have a potential upside of 47.35%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than its peers.

Insider & Institutional Ownership

73.8% of shares of all “Chemicals & allied products” companies are held by institutional investors. 2.2% of Perimeter Solutions shares are held by company insiders. Comparatively, 8.6% of shares of all “Chemicals & allied products” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Perimeter Solutions and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Perimeter Solutions	$360.51 million	$91.76 million	23.55
Perimeter Solutions Competitors	$8.35 billion	$307.83 million	18.57

Perimeter Solutions’ peers have higher revenue and earnings than Perimeter Solutions. Perimeter Solutions is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Perimeter Solutions peers beat Perimeter Solutions on 7 of the 13 factors compared.

Perimeter Solutions Company Profile

(Get Rating)

Perimeter Solutions, SA manufactures and supplies firefighting products and lubricant additives in the United States, Germany, and internationally. It operates in two segments, Fire Safety and Oil Additives. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services for federal, state, provincial, local/municipal, and commercial customers. The Oil Additives segment produces Phosphorus Pentasulfide which is primarily used in the preparation of lubricant additives, including a family of compounds called Zinc Dialkyldithiophosphates. The company offers its products under the brands PHOS-CHEK, FIRE-TROL, AUXQUIMIA, SOLBERG. and BIOGEMA. Perimeter Solutions, SA was founded in 1963 and is headquartered in Clayton, Missouri.