Comparing Perimeter Solutions (NYSE:PRM) & Kuraray (OTCMKTS:KURRY)

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

Volatility & Risk

Kuraray has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kuraray and Perimeter Solutions’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuraray	$5.79 billion	0.56	$415.83 million	$3.69	7.72
Perimeter Solutions	$360.51 million	2.46	$91.76 million	$0.17	33.12

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

Analyst Recommendations

This is a breakdown of current recommendations for Kuraray and Perimeter Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuraray	0	1	0	0	2.00
Perimeter Solutions	0	0	1	0	3.00

Perimeter Solutions has a consensus price target of $12.00, suggesting a potential upside of 113.14%. Given Perimeter Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Perimeter Solutions is more favorable than Kuraray.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kuraray	7.20%	9.59%	5.31%
Perimeter Solutions	10.10%	-3.90%	-1.82%

Summary

Perimeter Solutions beats Kuraray on 7 of the 12 factors compared between the two stocks.

About Kuraray

(Get Rating)

Kuraray Co., Ltd. engages in the manufacture and sale of functional resins, chemicals, textiles, medical products, and synthetic fibers. It operates through the following segments: Vinyl Acetate, Isoprene, Functional Materials, Fibers and Textiles, Trading, and Others. The Vinyl Acetate segment domestically produces polyvinyl alcohol (PVA) resin, optical PVA film, and EVAL gas barrier. The Isoprene segment manufactures isoprene, fine chemicals, GENESTAR, SEPTON, liquid rubber, KURARITY acrylic thermoplastic elastomer, and others. The Functional Materials segment offers methacrylic resin, CLARINO, and dental materials in medical business. The Fibers and Textiles segment sells KURALON, polyester staple, KURAFLEX, hook and loop fasteners, and others. The Trading segment includes importing and exporting as well as the wholesaling of fibers and textiles such as polyester filament and chemicals. The Others segment deals with activated carbon, aqua, and engineering business. The company was founded on June 24, 1926 and is headquartered in Tokyo, Japan.

About Perimeter Solutions

(Get Rating)

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 Oil Additives. 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 Oil Additives segment produces 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 brands PHOS-CHEK, FIRE-TROL, AUXQUIMIA, SOLBERG. and BIOGEMA. Perimeter Solutions, SA was founded in 1963 and is headquartered in Clayton, Missouri.