Axalta Coating Systems (NYSE:AXTA – Get Free Report) and Perimeter Solutions (NYSE:PRM – Get Free Report) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Analyst Ratings
This is a summary of current recommendations and price targets for Axalta Coating Systems and Perimeter Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axalta Coating Systems | 0 | 12 | 4 | 0 | 2.25 |
| Perimeter Solutions | 1 | 0 | 2 | 1 | 2.75 |
Axalta Coating Systems currently has a consensus target price of $34.31, suggesting a potential upside of 6.56%. Perimeter Solutions has a consensus target price of $37.00, suggesting a potential upside of 22.72%. Given Perimeter Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Perimeter Solutions is more favorable than Axalta Coating Systems.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axalta Coating Systems | $5.12 billion | 1.35 | $378.00 million | $1.71 | 18.83 |
| Perimeter Solutions | $652.86 million | 7.53 | -$206.37 million | ($1.34) | -22.50 |
Axalta Coating Systems has higher revenue and earnings than Perimeter Solutions. Perimeter Solutions is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Axalta Coating Systems has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500.
Institutional and Insider Ownership
98.3% of Axalta Coating Systems shares are owned by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are owned by institutional investors. 0.3% of Axalta Coating Systems shares are owned by insiders. Comparatively, 13.1% of Perimeter Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Axalta Coating Systems and Perimeter Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axalta Coating Systems | 7.22% | 22.37% | 6.92% |
| Perimeter Solutions | -26.93% | 18.29% | 7.73% |
Summary
Axalta Coating Systems beats Perimeter Solutions on 8 of the 15 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Axalta Coating Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Axalta Coating Systems and related companies with MarketBeat.com's FREE daily email newsletter.
