Contrasting Novozymes A/S (OTCMKTS:NVZMY) & Perimeter Solutions (NYSE:PRM)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Novozymes A/S and Perimeter Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novozymes A/S	0	1	0	2	3.33
Perimeter Solutions	1	0	3	1	2.80

Perimeter Solutions has a consensus price target of $40.67, suggesting a potential upside of 14.27%. Given Perimeter Solutions’ higher possible upside, analysts plainly believe Perimeter Solutions is more favorable than Novozymes A/S.

Risk and Volatility

Novozymes A/S has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Earnings and Valuation

This table compares Novozymes A/S and Perimeter Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novozymes A/S	$4.70 billion	5.15	$660.28 million	$1.48	39.48
Perimeter Solutions	$652.86 million	8.89	-$206.37 million	($1.34)	-26.56

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

Profitability

This table compares Novozymes A/S and Perimeter Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novozymes A/S	14.22%	6.52%	4.30%
Perimeter Solutions	-26.93%	18.29%	7.73%

Insider and Institutional Ownership

0.0% of Novozymes A/S shares are owned by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are owned by institutional investors. 13.1% of Perimeter Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Perimeter Solutions beats Novozymes A/S on 8 of the 15 factors compared between the two stocks.

About Novozymes A/S

Novozymes A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novozymes A/S was founded in 1925 and is based in Bagsvaerd, Denmark.

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.