Critical Comparison: 5E Advanced Materials (NASDAQ:FEAM) & Perimeter Solutions (NYSE:PRM)

Perimeter Solutions (NYSE:PRM) and 5E Advanced Materials (NASDAQ:FEAM) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Insider & Institutional Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. 10.0% of Perimeter Solutions shares are held by company insiders. Comparatively, 0.2% of 5E Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Perimeter Solutions and 5E Advanced Materials’ 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%
5E Advanced Materials	N/A	-103.10%	-64.96%

Earnings and Valuation

This table compares Perimeter Solutions and 5E Advanced Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$636.34 million	6.18	-$5.91 million	$0.42	63.25
5E Advanced Materials	N/A	N/A	-$31.56 million	($7.03)	-0.30

Perimeter Solutions has higher revenue and earnings than 5E Advanced Materials. 5E Advanced Materials 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 & Risk

Perimeter Solutions has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, 5E Advanced Materials has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Perimeter Solutions and 5E Advanced Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	3	1	0	2.25
5E Advanced Materials	1	1	2	0	2.25

Perimeter Solutions presently has a consensus price target of $33.00, indicating a potential upside of 24.22%. 5E Advanced Materials has a consensus price target of $8.13, indicating a potential upside of 285.07%. Given 5E Advanced Materials’ higher possible upside, analysts plainly believe 5E Advanced Materials is more favorable than Perimeter Solutions.

Summary

Perimeter Solutions beats 5E Advanced Materials on 10 of the 12 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 5E Advanced Materials

5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.