Analyzing Perimeter Solutions (PRM) & Its Rivals

Perimeter Solutions (NYSE:PRM) is one of 295 public companies in the “Chemicals” industry, but how does it compare to its competitors? We will compare Perimeter Solutions to similar businesses based on the strength of its profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares Perimeter Solutions and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	6.68%	20.79%	7.71%
Perimeter Solutions Competitors	-59.15%	-0.44%	-1.38%

Insider & Institutional Ownership

89.9% of Perimeter Solutions shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are owned by institutional investors. 13.1% of Perimeter Solutions shares are owned by insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Perimeter Solutions has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Perimeter Solutions’ competitors have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Perimeter Solutions and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Perimeter Solutions	$831.49 million	-$206.37 million	240.99
Perimeter Solutions Competitors	$8.01 billion	$230.87 million	9.98

Perimeter Solutions’ competitors have higher revenue and earnings than Perimeter Solutions. Perimeter Solutions is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	1	1	4	0	2.50
Perimeter Solutions Competitors	3248	12216	14135	519	2.40

Perimeter Solutions presently has a consensus target price of $41.50, suggesting a potential upside of 32.47%. As a group, “Chemicals” companies have a potential upside of 8.38%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Perimeter Solutions is more favorable than its competitors.

Summary

Perimeter Solutions beats its competitors on 9 of the 13 factors compared.

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.