Perimeter Solutions (PRM) versus Its Competitors Critical Contrast

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

Analyst Recommendations

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	904	1461	42	2.56

Perimeter Solutions presently has a consensus target price of $14.50, indicating a potential upside of 93.59%. As a group, “Chemicals & allied products” companies have a potential upside of 51.83%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, research analysts clearly believe Perimeter Solutions is more favorable than its peers.

Insider and Institutional 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 insiders. Comparatively, 8.7% of shares of all “Chemicals & allied products” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

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 0.43, indicating 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	-16.30%	18.59%	6.13%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Perimeter Solutions	$360.51 million	$91.76 million	22.70
Perimeter Solutions Competitors	$8.34 billion	$307.83 million	18.47

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.