Critical Survey: Perimeter Solutions (PRM) vs. 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 similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Perimeter Solutions	$360.51 million	-$659.83 million	26.18
Perimeter Solutions Competitors	$8.34 billion	$268.80 million	19.05

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.

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 Ratings

This is a breakdown of recent ratings for Perimeter Solutions and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	0	2	0	3.00
Perimeter Solutions Competitors	119	892	1458	40	2.57

Perimeter Solutions currently has a consensus target price of $14.50, suggesting a potential upside of 67.82%. As a group, “Chemicals & allied products” companies have a potential upside of 36.56%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Perimeter Solutions is more favorable than its peers.

Institutional and Insider Ownership

71.3% 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, 8.7% of shares of all “Chemicals & allied products” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Perimeter Solutions has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Perimeter Solutions’ peers have a beta of 0.46, indicating that their average stock price is 54% less volatile than the S&P 500.

Summary

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

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.