Head-To-Head Review: Perimeter Solutions (NYSE:PRM) versus Huabao International (OTCMKTS:HUIHY)

Perimeter Solutions (NYSE:PRM) and Huabao International (OTCMKTS:HUIHY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

89.9% of Perimeter Solutions shares are owned by institutional investors. 10.0% of Perimeter Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Perimeter Solutions and Huabao International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	1	0	2	1	2.75
Huabao International	0	0	0	0	0.00

Perimeter Solutions currently has a consensus price target of $32.50, indicating a potential upside of 11.67%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than Huabao International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	-31.61%	17.82%	8.11%
Huabao International	N/A	N/A	N/A

Valuation and Earnings

This table compares Perimeter Solutions and Huabao International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$652.86 million	6.66	-$206.37 million	($1.42)	-20.50
Huabao International	$484.77 million	3.33	-$54.08 million	N/A	N/A

Huabao International has lower revenue, but higher earnings than Perimeter Solutions.

Risk and Volatility

Perimeter Solutions has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Huabao International has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Summary

Perimeter Solutions beats Huabao International on 11 of the 13 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 Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.