Nissan Chemical (OTCMKTS:NNCHY) versus Perimeter Solutions (NYSE:PRM) Financial Survey

Nissan Chemical (OTCMKTS:NNCHY) and Perimeter Solutions (NYSE:PRM) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nissan Chemical	17.30%	19.14%	13.72%
Perimeter Solutions	13.05%	-1.11%	-0.52%

Earnings and Valuation

This table compares Nissan Chemical 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
Nissan Chemical	$1.65 billion	3.14	$284.08 million	$2.23	16.97
Perimeter Solutions	$560.97 million	5.09	-$5.91 million	$0.43	45.30

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

Risk & Volatility

Nissan Chemical has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Institutional & Insider Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. 10.0% of Perimeter Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Nissan Chemical and Perimeter Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nissan Chemical	0	0	0	0	0.00
Perimeter Solutions	0	0	2	0	3.00

Perimeter Solutions has a consensus price target of $18.50, suggesting a potential downside of 5.03%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than Nissan Chemical.

Summary

Perimeter Solutions beats Nissan Chemical on 8 of the 14 factors compared between the two stocks.

About Nissan Chemical

Nissan Chemical Corporation engages in the chemicals, performance materials, agricultural chemicals, and pharmaceuticals businesses in Japan and internationally. The company provides high purity chemicals; AdBlue, an urea solution; ammonia, sulfuric, and nitric acid, as well as concrete and civil engineering-related products; TEPIC, an epoxy compound; Melamine Cyanurate, a salt of melamine and iso cyanuric acid; TEPIC-VL, a liquid epoxy compound; TEPIC-FL, a liquid epoxy material; FOLDI-E101, an epoxy reactive diluent; Ecopromote, a nucleating agents for PLA; Nissan Reishi, a health food; phenylphosphonic acid; HI-LITE, a chlorinated isocyanulate; OPTBEADS, a melamine-formaldehyde resin and silica; and FINEOXOCOL, a saturated fatty alcohol and acid. It also offers performance materials comprising display, semiconductor, and inorganic materials; agricultural chemicals, such as herbicides, insecticides, fungicides, etc. for use on agricultural land, as well as in golf courses and parks; and drug substances for antiparasite drugs for animals. In addition, the company provides pharmaceutical products, such as LIVALO, a antihypercholesterolemic agent; LANDEL and FINTE, a long-acting calcium channel blocker; APIs and intermediaries; and manufacturing and process researching services for pharmaceutical ingredients. Further, it develops healthcare, information and communication materials, and environmental and energy materials. The company was formerly known as Nissan Chemical Industries, Ltd. and changed its name to Nissan Chemical Corporation in July 2018. Nissan Chemical Corporation was founded in 1887 and is headquartered in Tokyo, Japan.

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.