Comparing Perimeter Solutions (NYSE:PRM) & Celanese (NYSE:CE)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Celanese	-16.30%	10.48%	2.70%
Perimeter Solutions	12.26%	17.33%	8.12%

Analyst Ratings

This is a summary of recent ratings for Celanese and Perimeter Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celanese	3	11	7	0	2.19
Perimeter Solutions	0	1	2	1	3.00

Celanese presently has a consensus price target of $54.78, indicating a potential upside of 31.05%. Perimeter Solutions has a consensus price target of $26.00, indicating a potential downside of 5.30%. Given Celanese’s higher probable upside, analysts plainly believe Celanese is more favorable than Perimeter Solutions.

Earnings & Valuation

This table compares Celanese and Perimeter Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celanese	$9.71 billion	0.47	-$1.52 billion	($28.27)	-1.48
Perimeter Solutions	$560.97 million	7.24	-$5.91 million	$0.42	65.37

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

Insider & Institutional Ownership

98.9% of Celanese shares are held by institutional investors. Comparatively, 89.9% of Perimeter Solutions shares are held by institutional investors. 0.3% of Celanese shares are held by company insiders. Comparatively, 10.0% 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.

Volatility and Risk

Celanese has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.

Summary

Perimeter Solutions beats Celanese on 11 of the 15 factors compared between the two stocks.

About Celanese

Celanese Corporation, a chemical and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. It operates through Engineered Materials and Acetyl Chain. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. In addition, it provides redispersible powders (RDP) for use in construction applications, including flooring, plasters, insulation, tiling, and waterproofing. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.

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.