Critical Review: Perimeter Solutions (NYSE:PRM) & Ascent Industries (NASDAQ:ACNT)

Perimeter Solutions (NYSE:PRM – Get Free Report) and Ascent Industries (NASDAQ:ACNT – Get Free Report) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Institutional and Insider Ownership

89.9% of Perimeter Solutions shares are owned by institutional investors. Comparatively, 26.1% of Ascent Industries shares are owned by institutional investors. 13.1% of Perimeter Solutions shares are owned by insiders. Comparatively, 7.5% of Ascent Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Perimeter Solutions and Ascent Industries”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 $652.86 million 7.20 -$206.37 million ($2.23) -12.89
Ascent Industries $74.94 million 1.66 $870,000.00 ($0.45) -30.63

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

Risk and Volatility

Perimeter Solutions has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Ascent Industries has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Perimeter Solutions -44.86% 19.15% 7.31%
Ascent Industries -5.31% -2.72% -2.07%

Analyst Recommendations

This is a summary of current ratings and price targets for Perimeter Solutions and Ascent Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perimeter Solutions 1 1 4 0 2.50
Ascent Industries 1 0 0 0 1.00

Perimeter Solutions currently has a consensus price target of $41.50, indicating a potential upside of 44.42%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Perimeter Solutions is more favorable than Ascent Industries.

Summary

Perimeter Solutions beats Ascent Industries on 11 of the 14 factors compared between the two stocks.

About Perimeter Solutions

(Get Free Report)

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 Ascent Industries

(Get Free Report)

Ascent Industries Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is based in Oak Brook, Illinois.

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