Head-To-Head Survey: Westlake Chemical Partners (NYSE:WLKP) versus Perimeter Solutions (NYSE:PRM)

Perimeter Solutions (NYSE:PRM) and Westlake Chemical Partners (NYSE:WLKP) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Perimeter Solutions and Westlake Chemical Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	3	1	0	2.25
Westlake Chemical Partners	0	2	0	0	2.00

Perimeter Solutions currently has a consensus target price of $33.00, suggesting a potential upside of 40.75%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Perimeter Solutions is more favorable than Westlake Chemical Partners.

Volatility & Risk

Perimeter Solutions has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Westlake Chemical Partners has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Valuation & Earnings

This table compares Perimeter Solutions and Westlake Chemical Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$636.34 million	5.45	-$5.91 million	($1.42)	-16.51
Westlake Chemical Partners	$1.17 billion	0.67	$62.39 million	$1.38	15.98

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

Insider & Institutional Ownership

89.9% of Perimeter Solutions shares are owned by institutional investors. Comparatively, 78.3% of Westlake Chemical Partners shares are owned by institutional investors. 10.0% of Perimeter Solutions shares are owned by insiders. Comparatively, 1.1% of Westlake Chemical Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Perimeter Solutions and Westlake Chemical Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	-31.61%	17.68%	8.23%
Westlake Chemical Partners	4.17%	5.97%	3.70%

Summary

Perimeter Solutions beats Westlake Chemical Partners on 9 of the 14 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 Westlake Chemical Partners

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company’s ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. Westlake Chemical Partners LP was founded in 1991 and is headquartered in Houston, Texas.