Critical Review: Perimeter Solutions (NYSE:PRM) vs. Minerals Technologies (NYSE:MTX)

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

Volatility and Risk

Minerals Technologies has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Minerals Technologies and Perimeter Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerals Technologies	0	2	1	0	2.33
Perimeter Solutions	1	0	2	1	2.75

Minerals Technologies currently has a consensus target price of $90.00, suggesting a potential upside of 8.69%. Perimeter Solutions has a consensus target price of $37.00, suggesting a potential upside of 9.01%. Given Perimeter Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Perimeter Solutions is more favorable than Minerals Technologies.

Valuation & Earnings

This table compares Minerals Technologies and Perimeter Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minerals Technologies	$2.07 billion	1.24	-$18.40 million	$5.17	16.02
Perimeter Solutions	$652.86 million	8.48	-$206.37 million	($1.34)	-25.33

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

Institutional and Insider Ownership

97.3% of Minerals Technologies shares are held by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are held by institutional investors. 3.7% of Minerals Technologies shares are held by company insiders. Comparatively, 13.1% of Perimeter Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Minerals Technologies and Perimeter Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minerals Technologies	7.60%	10.40%	5.19%
Perimeter Solutions	-26.93%	18.29%	7.73%

Summary

Perimeter Solutions beats Minerals Technologies on 9 of the 15 factors compared between the two stocks.

About Minerals Technologies

Minerals Technologies Inc. develops, produces, and markets various mineral, mineral-based, and related systems and services. The company operates through two segments, Consumer & Specialties, and Engineered Solutions segments. The Consumer & Specialties segment offers household and personal care products, such as pet litter, personal care, fabric care, edible oil and other fluid purification, animal health, and agricultural products; and specialty additives products, including precipitated calcium carbonate and ground calcium carbonate products that are used in the paper, paperboard, and fiber based packaging industries, as well as automotive, construction, and table and food applications. This segment produces limestone and dolomitic limestone used in construction, automotive, and consumer markets for packaging applications. The Engineered Solutions segment provides high-temperature technology products consisting of custom-blended mineral and non-mineral products for casting auto parts, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components; and environmental and infrastructure products comprising geosynthetic clay lining systems, vapor intrusion mitigation products, sub surface waterproofing systems, green roofs, wastewater remediation, drinking water purification technologies, and drilling products. In addition, this segment provides chromite products; gunnable monolithic refractory products and application systems; monolithic refractory materials and pre-cast refractory shapes; refractory shapes and linings; carbon composite and pyrolitic graphite; and filtration and well testing services. It markets its products primarily through its direct sales force, as well as regional distributors. The company serves in the United States, Canada, Latin America, Europe, Africa, and Asia. Minerals Technologies Inc. was incorporated in 1968 and is headquartered in New York, New York.

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.