Financial Comparison: Huabao International (OTCMKTS:HUIHY) and Perimeter Solutions (NYSE:PRM)

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

Risk & Volatility

Huabao International has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huabao International	$484.77 million	3.33	-$54.08 million	N/A	N/A
Perimeter Solutions	$652.86 million	7.66	-$206.37 million	($1.42)	-21.58

Huabao International has higher earnings, but lower revenue than Perimeter Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Huabao International	N/A	N/A	N/A
Perimeter Solutions	-31.61%	17.82%	8.11%

Analyst Ratings

This is a breakdown of recent recommendations for Huabao International and Perimeter Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huabao International	0	0	0	0	0.00
Perimeter Solutions	1	0	2	1	2.75

Perimeter Solutions has a consensus target price of $32.50, suggesting a potential upside of 6.07%. Given Perimeter Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Perimeter Solutions is more favorable than Huabao International.

Insider and Institutional Ownership

89.9% of Perimeter Solutions shares are held by institutional investors. 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.

Summary

Perimeter Solutions beats Huabao International on 11 of the 13 factors compared between the two stocks.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.

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.