Givaudan (OTCMKTS:GVDNY) versus Perimeter Solutions (NYSE:PRM) Head to Head Review

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

Institutional & Insider Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. Comparatively, 0.0% of Givaudan 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, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Perimeter Solutions and Givaudan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	1	1	4	0	2.50
Givaudan	0	5	3	0	2.38

Perimeter Solutions currently has a consensus target price of $43.00, suggesting a potential upside of 23.64%. Given Perimeter Solutions’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Perimeter Solutions is more favorable than Givaudan.

Risk and Volatility

Perimeter Solutions has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Earnings and Valuation

This table compares Perimeter Solutions and Givaudan”s gross 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	8.69	-$206.37 million	($1.34)	-25.95
Givaudan	$9.02 billion	4.23	$1.29 billion	N/A	N/A

Givaudan has higher revenue and earnings than Perimeter Solutions.

Profitability

This table compares Perimeter Solutions and Givaudan’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%
Givaudan	N/A	N/A	N/A

Summary

Perimeter Solutions beats Givaudan on 9 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 Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.