Orbia Advance (OTCMKTS:MXCHY) and Perimeter Solutions (NYSE:PRM) Head to Head Review

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

Insider and Institutional 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 stock is poised for long-term growth.

Profitability

This table compares Perimeter Solutions and Orbia Advance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	12.26%	17.33%	8.12%
Orbia Advance	2.21%	7.87%	2.14%

Earnings and Valuation

This table compares Perimeter Solutions and Orbia Advance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$560.97 million	7.25	-$5.91 million	$0.42	65.48
Orbia Advance	$7.51 billion	0.22	$145.00 million	N/A	N/A

Orbia Advance has higher revenue and earnings than Perimeter Solutions.

Volatility & Risk

Perimeter Solutions has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, Orbia Advance has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Perimeter Solutions and Orbia Advance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	2	2	0	2.50
Orbia Advance	0	0	2	0	3.00

Perimeter Solutions presently has a consensus price target of $30.00, indicating a potential upside of 9.09%. Given Perimeter Solutions’ higher possible upside, research analysts clearly believe Perimeter Solutions is more favorable than Orbia Advance.

Summary

Perimeter Solutions beats Orbia Advance on 8 of the 11 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 Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.