Perimeter Solutions (NYSE:PRM – Get Free Report) and Axalta Coating Systems (NYSE:AXTA – Get Free Report) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Earnings & Valuation
This table compares Perimeter Solutions and Axalta Coating Systems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perimeter Solutions | $652.86 million | 7.46 | -$206.37 million | ($1.34) | -22.27 |
| Axalta Coating Systems | $5.12 billion | 1.31 | $378.00 million | $1.71 | 18.31 |
Profitability
This table compares Perimeter Solutions and Axalta Coating Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perimeter Solutions | -26.93% | 18.29% | 7.73% |
| Axalta Coating Systems | 7.22% | 22.37% | 6.92% |
Insider & Institutional Ownership
89.9% of Perimeter Solutions shares are held by institutional investors. Comparatively, 98.3% of Axalta Coating Systems shares are held by institutional investors. 13.1% of Perimeter Solutions shares are held by insiders. Comparatively, 0.3% of Axalta Coating Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Perimeter Solutions and Axalta Coating Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perimeter Solutions | 1 | 0 | 2 | 1 | 2.75 |
| Axalta Coating Systems | 0 | 12 | 4 | 0 | 2.25 |
Perimeter Solutions presently has a consensus price target of $37.00, indicating a potential upside of 23.99%. Axalta Coating Systems has a consensus price target of $34.15, indicating a potential upside of 9.07%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than Axalta Coating Systems.
Risk & Volatility
Perimeter Solutions has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Summary
Axalta Coating Systems beats Perimeter Solutions on 8 of the 15 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 Axalta Coating Systems
Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.
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