Comparing Perimeter Solutions (NYSE:PRM) & Croda International (OTCMKTS:COIHY)

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Croda International and Perimeter Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Croda International	0	3	0	1	2.50
Perimeter Solutions	1	1	4	0	2.50

Perimeter Solutions has a consensus price target of $43.00, suggesting a potential upside of 23.45%. Given Perimeter Solutions’ higher possible upside, analysts plainly believe Perimeter Solutions is more favorable than Croda International.

Volatility & Risk

Croda International has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Valuation and Earnings

This table compares Croda International 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
Croda International	$2.24 billion	2.45	$81.76 million	N/A	N/A
Perimeter Solutions	$705.90 million	8.05	-$206.37 million	($1.34)	-25.99

Croda International has higher revenue and earnings than Perimeter Solutions.

Profitability

This table compares Croda International and Perimeter Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Croda International	N/A	N/A	N/A
Perimeter Solutions	-26.93%	18.29%	7.73%

Institutional and Insider Ownership

0.1% of Croda International shares are held by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are held by institutional investors. 13.1% of Perimeter Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Perimeter Solutions beats Croda International on 8 of the 12 factors compared between the two stocks.

About Croda International

Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers speciality and active ingredients across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, adjuvant systems, small molecule, protein, and nucleic acid delivery platforms, as well as purity materials for pharmaceutical formulations. In addition, the company offers crop protection and seed enhancement related solutions. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.

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.