Head-To-Head Contrast: Ashland (NYSE:ASH) & Perimeter Solutions (NYSE:PRM)

Perimeter Solutions (NYSE:PRM) and Ashland (NYSE:ASH) are both mid-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares Perimeter Solutions and Ashland”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$831.49 million	5.85	-$206.37 million	$0.13	228.43
Ashland	$1.86 billion	1.86	$4.00 million	$0.08	943.81

Ashland has higher revenue and earnings than Perimeter Solutions. Perimeter Solutions is trading at a lower price-to-earnings ratio than Ashland, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	6.68%	19.86%	7.47%
Ashland	0.21%	8.17%	3.36%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Perimeter Solutions and Ashland, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	1	1	4	0	2.50
Ashland	0	4	7	0	2.64

Perimeter Solutions currently has a consensus target price of $41.50, suggesting a potential upside of 39.75%. Ashland has a consensus target price of $75.30, suggesting a potential downside of 0.27%. Given Perimeter Solutions’ higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than Ashland.

Volatility and Risk

Perimeter Solutions has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Ashland has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Institutional & Insider Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. Comparatively, 93.9% of Ashland shares are held by institutional investors. 13.1% of Perimeter Solutions shares are held by insiders. Comparatively, 1.3% of Ashland shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Perimeter Solutions beats Ashland on 8 of the 14 factors compared between the two stocks.

About Perimeter Solutions

Perimeter Solutions is a global provider of fire safety products and specialty chemicals. Its fire safety business develops products used to prevent and suppress wildfires and to fight structural and industrial fires, including long-term fire retardants, firefighting foams and related agents. Its PHOS-CHEK brand is used in wildfire management. The company also makes lubricant additives, including phosphorus-based products used in industrial and transportation applications. Its products serve customers in multiple regions around the world, including firefighting agencies and operators that rely on specialty chemical solutions.

About Ashland

Ashland Inc. is a specialty chemicals company that develops and supplies ingredients and additives for businesses across a range of industries. Its products include pharmaceutical ingredients and excipients, personal care ingredients, and specialty additives used in coatings, construction materials and other applications. The company traces its roots to 1924, when it was established as Ashland Refining Company in Kentucky. Over time, Ashland shifted from its origins in oil refining toward specialty chemicals and ingredients.