Perimeter Solutions (NYSE:PRM – Get Free Report) and PPG Industries (NYSE:PPG – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares Perimeter Solutions and PPG Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perimeter Solutions | 12.26% | 17.33% | 8.12% |
| PPG Industries | 6.35% | 24.17% | 9.91% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Perimeter Solutions and PPG Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perimeter Solutions | 0 | 1 | 2 | 1 | 3.00 |
| PPG Industries | 1 | 9 | 7 | 1 | 2.44 |
Institutional & Insider Ownership
89.9% of Perimeter Solutions shares are owned by institutional investors. Comparatively, 81.9% of PPG Industries shares are owned by institutional investors. 10.0% of Perimeter Solutions shares are owned by company insiders. Comparatively, 0.3% of PPG Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Perimeter Solutions and PPG Industries”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perimeter Solutions | $560.97 million | 7.25 | -$5.91 million | $0.42 | 65.46 |
| PPG Industries | $15.69 billion | 1.43 | $1.12 billion | $4.41 | 22.75 |
PPG Industries has higher revenue and earnings than Perimeter Solutions. PPG Industries is trading at a lower price-to-earnings ratio than Perimeter Solutions, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Perimeter Solutions has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, PPG Industries has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
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 PPG Industries
PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. The Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage and personal care, promotional, and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.
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