Green Plains (NASDAQ:GPRE – Get Free Report) and Perimeter Solutions (NYSE:PRM – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Insider and Institutional Ownership
89.9% of Perimeter Solutions shares are held by institutional investors. 1.0% of Green Plains 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Green Plains and Perimeter Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Green Plains | 1 | 5 | 1 | 0 | 2.00 |
| Perimeter Solutions | 0 | 0 | 2 | 0 | 3.00 |
Risk and Volatility
Green Plains has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Perimeter Solutions has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.
Profitability
This table compares Green Plains and Perimeter Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Green Plains | -6.34% | -13.65% | -6.72% |
| Perimeter Solutions | 13.05% | -1.11% | -0.52% |
Earnings & Valuation
This table compares Green Plains and Perimeter Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Green Plains | $2.46 billion | 0.22 | -$82.50 million | ($2.40) | -3.47 |
| Perimeter Solutions | $560.97 million | 4.87 | -$5.91 million | $0.43 | 43.40 |
Perimeter Solutions has lower revenue, but higher earnings than Green Plains. Green Plains 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 Green Plains on 13 of the 14 factors compared between the two stocks.
About Green Plains
Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.
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.
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