Head to Head Analysis: Sociedad Quimica y Minera (NYSE:SQM) & Perimeter Solutions (NYSE:PRM)

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

Institutional & Insider Ownership

12.4% of Sociedad Quimica y Minera shares are held by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are held by institutional investors. 10.0% of Perimeter Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Sociedad Quimica y Minera has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sociedad Quimica y Minera and Perimeter Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sociedad Quimica y Minera	$4.33 billion	4.18	$685.12 million	$1.83	34.58
Perimeter Solutions	$560.97 million	7.33	-$5.91 million	$0.42	66.15

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

Analyst Ratings

This is a summary of recent ratings and price targets for Sociedad Quimica y Minera and Perimeter Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sociedad Quimica y Minera	1	6	3	0	2.20
Perimeter Solutions	0	1	2	1	3.00

Sociedad Quimica y Minera presently has a consensus target price of $49.07, suggesting a potential downside of 22.45%. Perimeter Solutions has a consensus target price of $26.00, suggesting a potential downside of 6.42%. Given Perimeter Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Perimeter Solutions is more favorable than Sociedad Quimica y Minera.

Profitability

This table compares Sociedad Quimica y Minera and Perimeter Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sociedad Quimica y Minera	11.29%	9.09%	4.17%
Perimeter Solutions	12.26%	17.33%	8.12%

Summary

Perimeter Solutions beats Sociedad Quimica y Minera on 11 of the 15 factors compared between the two stocks.

About Sociedad Quimica y Minera

Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.

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.