Perimeter Solutions (NYSE:PRM) vs. Orbia Advance (OTCMKTS:MXCHY) Financial Analysis

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

Risk & Volatility

Orbia Advance has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Institutional & Insider Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. 10.0% of Perimeter Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Orbia Advance and Perimeter Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbia Advance	$7.51 billion	0.22	$145.00 million	N/A	N/A
Perimeter Solutions	$560.97 million	7.25	-$5.91 million	$0.42	65.50

Orbia Advance has higher revenue and earnings than Perimeter Solutions.

Analyst Recommendations

This is a summary of current recommendations and price targets for Orbia Advance and Perimeter Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbia Advance	0	0	2	0	3.00
Perimeter Solutions	0	2	2	0	2.50

Perimeter Solutions has a consensus price target of $30.00, indicating a potential upside of 9.05%. Given Perimeter Solutions’ higher probable upside, analysts clearly believe Perimeter Solutions is more favorable than Orbia Advance.

Profitability

This table compares Orbia Advance and Perimeter Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orbia Advance	N/A	N/A	N/A
Perimeter Solutions	12.26%	17.33%	8.12%

Summary

Perimeter Solutions beats Orbia Advance on 8 of the 11 factors compared between the two stocks.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.

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.