Reviewing Hawkins (NASDAQ:HWKN) & Perimeter Solutions (NYSE:PRM)

Hawkins (NASDAQ:HWKNGet Rating) and Perimeter Solutions (NYSE:PRMGet Rating) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Hawkins 7.00% 17.93% 10.28%
Perimeter Solutions N/A N/A N/A

Earnings & Valuation

This table compares Hawkins and Perimeter Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawkins $596.87 million 1.28 $40.98 million $2.37 15.22
Perimeter Solutions $362.34 million N/A -$659.83 million N/A N/A

Hawkins has higher revenue and earnings than Perimeter Solutions.

Analyst Recommendations

This is a summary of recent ratings and price targets for Hawkins and Perimeter Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawkins 0 0 1 0 3.00
Perimeter Solutions 0 0 1 0 3.00

Hawkins presently has a consensus target price of $52.00, indicating a potential upside of 44.16%. Perimeter Solutions has a consensus target price of $15.00, indicating a potential upside of 77.51%. Given Perimeter Solutions’ higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than Hawkins.

Institutional & Insider Ownership

65.0% of Hawkins shares are held by institutional investors. 3.5% of Hawkins shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Hawkins beats Perimeter Solutions on 7 of the 8 factors compared between the two stocks.

About Hawkins (Get Rating)

Hawkins, Inc. blends, manufactures, and distributes chemicals and other specialty ingredients in the United States and internationally. It operates through three segments: Industrial, Water Treatment, and Health and Nutrition. The Industrial segment offers industrial chemicals, products, and services to agriculture, chemical processing, electronics, energy, food, pharmaceutical, and plating industries. This segment primarily provides acids, alkalis, and industrial and food-grade salts. It also receives, stores, and distributes various chemicals, such as liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, and potassium hydroxide. In addition, this segment manufactures sodium hypochlorite and agricultural products, as well as various food-grade products that include liquid phosphates, lactates, and other blended products; repackages water treatment chemicals and bulk industrial chemicals; and performs custom blending of chemicals, and contract and private label bleach packaging. The Water Treatment segment offers chemicals, equipment, and solutions for potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool and agriculture water. The Health and Nutrition segment offers ingredient distribution, processing, and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, and health and wellness products. Its products portfolio includes minerals, botanicals and herbs, vitamins and amino acids, excipients, joint products, sweeteners, and enzymes. The company was founded in 1938 and is headquartered in Roseville, Minnesota.

About Perimeter Solutions (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.

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