Reviewing H. B. Fuller (NYSE:FUL) and Perimeter Solutions (NYSE:PRM)

H. B. Fuller (NYSE:FUL) and Perimeter Solutions (NYSE:PRM) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Volatility & Risk

H. B. Fuller has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for H. B. Fuller and Perimeter Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H. B. Fuller	1	3	2	1	2.43
Perimeter Solutions	0	0	2	0	3.00

H. B. Fuller presently has a consensus price target of $67.25, indicating a potential upside of 21.00%. Perimeter Solutions has a consensus price target of $18.50, indicating a potential upside of 18.36%. Given H. B. Fuller’s higher possible upside, research analysts plainly believe H. B. Fuller is more favorable than Perimeter Solutions.

Profitability

This table compares H. B. Fuller and Perimeter Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H. B. Fuller	2.92%	11.50%	4.21%
Perimeter Solutions	23.23%	-4.33%	-2.01%

Insider and Institutional Ownership

95.9% of H. B. Fuller shares are owned by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are owned by institutional investors. 2.0% of H. B. Fuller shares are owned by company insiders. Comparatively, 10.0% of Perimeter Solutions shares are owned by company 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.

Earnings and Valuation

This table compares H. B. Fuller and Perimeter Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H. B. Fuller	$3.57 billion	0.84	$130.26 million	$1.85	30.04
Perimeter Solutions	$560.97 million	4.12	-$5.91 million	$0.79	19.78

H. B. Fuller has higher revenue and earnings than Perimeter Solutions. Perimeter Solutions is trading at a lower price-to-earnings ratio than H. B. Fuller, indicating that it is currently the more affordable of the two stocks.

Summary

H. B. Fuller beats Perimeter Solutions on 9 of the 14 factors compared between the two stocks.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.

About Perimeter Solutions

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 Specialty Products. 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 Specialty Products segment produces and sells 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 PHOS-CHEK, FIRE-TROL, AUXQUIMIA, and SOLBERG brands. Perimeter Solutions, SA was founded in 1963 and is headquartered in Clayton, Missouri.