Novozymes A/S (OTCMKTS:NVZMY) versus Perimeter Solutions (NYSE:PRM) Head-To-Head Contrast

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

Profitability

This table compares Perimeter Solutions and Novozymes A/S’s 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%
Novozymes A/S	14.22%	6.52%	4.30%

Insider & Institutional Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. Comparatively, 0.0% of Novozymes A/S shares are held by institutional investors. 13.1% of Perimeter Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$705.90 million	8.34	-$206.37 million	($1.34)	-26.93
Novozymes A/S	$4.70 billion	5.32	$660.28 million	$1.48	40.75

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.

Volatility and Risk

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	1	3	1	3.00
Novozymes A/S	0	1	0	2	3.33

Perimeter Solutions presently has a consensus target price of $40.67, suggesting a potential upside of 12.71%. Given Perimeter Solutions’ higher possible upside, equities analysts clearly believe Perimeter Solutions is more favorable than Novozymes A/S.

Summary

Perimeter Solutions beats Novozymes A/S 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 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.