Reviewing Koninklijke DSM (OTCMKTS:RDSMY) & Perimeter Solutions (NYSE:PRM)

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

Insider & Institutional Ownership

0.2% of Koninklijke DSM shares are owned by institutional investors. 2.2% of Perimeter Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Koninklijke DSM and Perimeter Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke DSM	0	0	6	0	3.00
Perimeter Solutions	0	0	1	0	3.00

Koninklijke DSM presently has a consensus price target of $156.25, suggesting a potential upside of 361.60%. Perimeter Solutions has a consensus price target of $12.00, suggesting a potential upside of 110.53%. Given Koninklijke DSM’s higher possible upside, equities research analysts clearly believe Koninklijke DSM is more favorable than Perimeter Solutions.

Volatility & Risk

Koninklijke DSM has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Perimeter Solutions has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares Koninklijke DSM and Perimeter Solutions’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke DSM	$10.89 billion	2.17	$1.98 billion	N/A	N/A
Perimeter Solutions	$360.51 million	2.49	$91.76 million	$0.17	33.53

Koninklijke DSM has higher revenue and earnings than Perimeter Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koninklijke DSM	N/A	N/A	N/A
Perimeter Solutions	10.10%	-3.90%	-1.82%

Summary

Koninklijke DSM beats Perimeter Solutions on 7 of the 11 factors compared between the two stocks.

About Koninklijke DSM

(Get Rating)

Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and sustainable living businesses in the Netherlands, Switzerland, rest of Europe, North America, Latin America, China, rest of Asia, and internationally. It operates through Nutrition, Materials, and Innovation Center segments. The Nutrition segment offers animal nutrition and health products, including vitamins, premixes, carotenoids, enzymes, microbes, and eubiotics; human nutrition and health products comprising vitamins, nutritional lipids, minerals, carotenoids, nutraceuticals, digestive enzymes, probiotics, and prebiotics, as well as active pharmaceutical ingredients; premix, market-ready solutions, and personalized nutrition; human milk oligosaccharides; and skin and sun care, hair care, and aroma ingredients; omega-3 fatty acids; and specialty food enzymes, cultures, bio-preservation, texturizing hydrocolloids, sugar reduction, and savory taste solutions. The Materials segment provides specialty plastics used in components for the electrical and electronics, automotive, flexible food-packaging, and consumer goods industries; and Dyneema, a fiber solution for use in personal protection, workwear, sports apparel, outdoor equipment, ropes and slings, synthetic chains, and nets for the aquaculture, and renewable energy sectors. The Innovation Center segment offers biomedical materials, and medical device and material manufacturing technologies in the areas of cardiovascular, continence care, dental, diabetes management, gynecology, neurology, ophthalmology, orthopedic, peripheral vascular, plastic and reconstructive surgery, and wound management. It also commercializes yeast technology yeast for ethanol production. The company was founded in 1902 and is headquartered in Heerlen, the Netherlands.

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.