Head-To-Head Survey: Perimeter Solutions (NYSE:PRM) & DAQO New Energy (NYSE:DQ)

Perimeter Solutions (NYSE:PRM) and DAQO New Energy (NYSE:DQ) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Institutional & Insider Ownership

89.9% of Perimeter Solutions shares are owned by institutional investors. Comparatively, 47.2% of DAQO New Energy shares are owned by institutional investors. 10.0% of Perimeter Solutions shares are owned by insiders. Comparatively, 24.3% of DAQO New Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Perimeter Solutions and DAQO New Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$560.97 million	5.82	-$5.91 million	$0.43	51.87
DAQO New Energy	$1.03 billion	1.90	-$345.21 million	($5.84)	-5.00

Perimeter Solutions has higher earnings, but lower revenue than DAQO New Energy. DAQO New Energy 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

Perimeter Solutions has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, DAQO New Energy has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Perimeter Solutions and DAQO New Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	0	2	0	3.00
DAQO New Energy	0	1	4	2	3.14

Perimeter Solutions presently has a consensus target price of $22.50, indicating a potential upside of 0.87%. DAQO New Energy has a consensus target price of $26.10, indicating a potential downside of 10.65%. Given Perimeter Solutions’ higher possible upside, equities research analysts clearly believe Perimeter Solutions is more favorable than DAQO New Energy.

Profitability

This table compares Perimeter Solutions and DAQO New Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	13.05%	-1.11%	-0.52%
DAQO New Energy	-65.64%	-6.54%	-5.97%

Summary

Perimeter Solutions beats DAQO New Energy on 10 of the 15 factors compared between the two stocks.

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.

About DAQO New Energy

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufacturers in the People's Republic of China. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is based in Shanghai, the People's Republic of China.