Financial Survey: Perimeter Solutions (NYSE:PRM) and Westlake Chemical Partners (NYSE:WLKP)

Perimeter Solutions (NYSE:PRM) and Westlake Chemical Partners (NYSE:WLKP) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Volatility and Risk

Perimeter Solutions has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Westlake Chemical Partners has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Perimeter Solutions and Westlake Chemical Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perimeter Solutions	0	3	1	0	2.25
Westlake Chemical Partners	0	2	0	0	2.00

Perimeter Solutions currently has a consensus price target of $33.00, indicating a potential upside of 23.90%. Given Perimeter Solutions’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Perimeter Solutions is more favorable than Westlake Chemical Partners.

Insider and Institutional Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. Comparatively, 78.3% of Westlake Chemical Partners shares are held by institutional investors. 10.0% of Perimeter Solutions shares are held by insiders. Comparatively, 1.1% of Westlake Chemical Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Perimeter Solutions and Westlake Chemical Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perimeter Solutions	12.26%	17.33%	8.12%
Westlake Chemical Partners	4.34%	6.00%	3.75%

Valuation and Earnings

This table compares Perimeter Solutions and Westlake Chemical Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perimeter Solutions	$560.97 million	7.02	-$5.91 million	$0.42	63.42
Westlake Chemical Partners	$1.14 billion	0.66	$62.39 million	$1.40	15.18

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

Summary

Perimeter Solutions beats Westlake Chemical Partners on 11 of the 14 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 Westlake Chemical Partners

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company’s ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. Westlake Chemical Partners LP was founded in 1991 and is headquartered in Houston, Texas.