Critical Contrast: Givaudan (OTCMKTS:GVDNY) versus Perimeter Solutions (NYSE:PRM)

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

Volatility & Risk

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

Insider and Institutional Ownership

0.0% of Givaudan shares are held by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are held by institutional investors. 13.1% of Perimeter Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Givaudan	0	5	3	0	2.38
Perimeter Solutions	0	2	4	0	2.67

Perimeter Solutions has a consensus price target of $43.00, suggesting a potential upside of 28.24%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than Givaudan.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Givaudan	N/A	N/A	N/A
Perimeter Solutions	-26.93%	18.29%	7.73%

Valuation and Earnings

This table compares Givaudan and Perimeter Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Givaudan	$9.02 billion	4.31	$1.29 billion	N/A	N/A
Perimeter Solutions	$652.86 million	8.38	-$206.37 million	($1.34)	-25.02

Givaudan has higher revenue and earnings than Perimeter Solutions.

Summary

Perimeter Solutions beats Givaudan on 9 of the 12 factors compared between the two stocks.

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.

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.